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Matterport Camera: Razor Versus Razor Blades2284

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DanSmigrod private msg quote post Address this user
Matterport Camera: Razor Versus Razor Blades

First some background:

$600 Off Matterport Camera Until 5 August 2016?
New Matterport Camera to be Announced?
Do you have more than one Matterport Camera?

I have always thought that the Matterport Camera is like a Razor. And, that Matterport never looked at it like that ... until now.

✓ Razor companies make money on the blades: not the Razor
✓ Ink jet printer companies make money on ink; not the printer
✓ Cruise lines make money on alcohol and gambling; not the cabin

So, it always struck me as strange that Matterport would charge so much for the Camera, when it really makes its money on processing, hosting and (eventually) ancillary revenue from VR, floor plans, and eventually Matterport Studio (vaporware so far).

I could imagine that as @StevenHattan speculates here, the VCs felt that Camera sales are slower than projections (which delays processing and hosting) so they have told Matterport it MUST drop the price of the Camera to start generating monthly recurring revenue (MRR) sooner than later.

Essentially, by trying to make money on the sale of the Camera, the real MRR money doesn't start until people sign up for monthly or annual hosting plans.

I could imagine that the VCs would even tell Matterport, "you need to give away the Camera as long as you can get the Camera in the hands of prolific scanners."

"Starwood's ... top 2% of Starwood customers generate 30% of the chain's profits," reported The Wall Street Journal reported today (28 July 2016).

If Matterport cold identify the top 2% of (potential) clients for processing and scanning, it would simply give them the Camera. (Casinos do this with free junkets because they know how to identify the top 2 percent.)

On the other hand, if you give the Camera away to someone that rarely scans, then that costs the company money. No free junkets to gamblers that will not gamble.

So, I could imagine that the $600 discount through 5 August 2016 will then become the new norm (or at least we will see $600 sales frequently).

That's a major departure for Matterport. As I shared in a related MUG Forum post, my impression is that the only price promotion that Matterport has done since I bought the Camera (July 2014) and started the Matterport User Group Forum (August 2014) has been free months of hosting.

So, this brings be back to thinking that the VCs have gotten impatient with Matterport. That actual Camera sales have missed projections and that they are insisting the Matterport focus on selling razor blades - not razors.

What do you think?

Dan
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3Dwalkmethru private msg quote post Address this user
I think Matterport never had a solid marketing plan. They had the tech mentally and left out the revenue model details. Yes they need to make money with processing, monthly service fee's and cameras, what they have failed to do is set targets for each. How many cameras do we need to generate the sales they need. If they sell the camera at no margin they will saturate the market with cameras and providers will not be able to make money in a price war. Uber is going through this right now too many drivers not making enough money and they will begin to drop out leaving just enough cars to maintain the model. Matterport needs to support its current providers and show success and then they will have a worldwide market. I'd people start selling their cameras that's a sign wake up Matterport. Use your current army empower them.
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