The Promised Land of Hardware Startups
Chris Quintero
1364

Hey Chris

Just stumbled upon your post when browsing /r/hwstartups.

After some early testing we just switched to a subscription model. Mostly because it also allowed us to lower the upfront hardware costs of ShapeScale.com.

We ran early tests and while there was a market for us of people paying $499 upfront for their ShapeScale, not everyone liked the idea but in turn was comfortable paying $299 instead tied with a $9.99/month subscription.

For us this is great because our software does actually come with a variable cost (the more scans we cloud process and store, the higher our fees) aside from the obvious (almost expected) continued R&D costs tied to adding new software features and maintaining the app and software security.

It feels like a more sustainable model for us and also our users. Having said that, there is definitely a lot of hate our there for subscription pricing models, which is why we still offer a lifetime plan for $299(for now at least) which is finding a decent amount of interest.

Anyways, thanks for sharing. When we first brainstormed ideas of how we can make our pricing work better for customers, we didn’t find a whole lot of examples in the consumer space aside of Peloton, DVRs, and home security cameras. Your article reassures me a little more that we are taking the right direction. 🙂

-Martin