I’ve been wondering if a price increase on the current lineup of products would help Wyze avoid setbacks like delaying future products/services or improve security. I get that the pricing is one of the reasons that make Wyze products very successful but wouldn’t it help the company advance further if they had more revenue coming in from their sales?
I would pay $25 (not including shipping and taxes) for a Wyze cam or even $35-$40 if it came with an accurate person detection setting. $20 for a Wyze camera was good for 2017 when Nest/Ring dominated the space but I feel like with the company growing a lot the past 3 years, a price increase is due to avoid future delays.
What do you guys think?
It’s called the “Ring Effect”.
But you know, it didn’t work, either
I don’t know the inner workings, but I don’t think funds are an issue. Their business model was built around volume, and they seem to be moving tons of product, which would imply that the plan is working. They also have VC funding. A price increase would affect sales volume to some extent, so it’s tough to say if it would be a net positive or not.
Some things just take time, and it isn’t always a question of resources. Nine women can’t make a baby in a month. The only reason you’re aware of delays in the first place is because they’re more open than most companies about their development process.
I remember not too long ago there was an email update from Wyze and one of the things that they mentioned was that they were trying to not raise the prices (I think it was around the time the smart plugs got released).
Yes, I love the fact that Wyze is open about their development processes but also keep in mind that other companies that aren’t as open do not give you product release dates and then walk back on them.
That was in response to the Trump tariffs on Chinese made products.
That’s right. And my understanding is that those tariffs have now been walked back for tech products.
That’s not true. Actually, it happens a lot. Most companies won’t give you a date until it’s pretty solid in the first place. But even then, stuff happens sometimes. As a high-profile example, I remember the first white iPhone was delayed for almost a year.
The only true “delay” I know of with Wyze is the lock. And I feel like that only half-counts, because it was just in Early Access. Nothing else had a “release date.” They gave us some estimates that the outdoor camera would be out by the end of 2019, for example, but it always an estimate, not a “release date.”
I thought the tariffs were just delayed to avoid a Christmas sales downturn?
Oh, maybe that’s true. Well, the tariffs keep getting delayed anyway. It sounds like they’re working toward a resolution. But yeah, the whole point of tariffs is that they’re bad for business. Companies will have to increase prices or eat the profit margin, which means they’ll either sell fewer products or make less money on each product. Wyze’s business model doesn’t really allow them to eat the profit margin, so they’d end up selling fewer products. I don’t think Wyze is interested in increasing prices unless they’re forced into that situation. And if they are forced into that situation, I don’t think it would avoid setbacks – it would be a setback.
From my experience in the retail world raising prices is not going to expedite new products or expand the current product line. I know Wyze is different but typically raising prices go into the pockets of the higher ups. That’s just my experience in the retail world I’m not speaking for Wyze in anyway