| I started a hardware company at the age of 23 and it was insanely difficult. Everything that could go wrong did. The challenges of designing production capable hardware and software, manufacturing, testing, packaging, shipping, supporting, handling failures (hardware or software problem? let the fighting commence!), managing inventory and cash flow are immense. So much so that I never want to ship hardware again. The problem here is they are probably not making any money in the low volumes they are producing this at. Any cash they do have is probably tied up in inventory, and in a startup it's really hard to predict what sales will be 3 months from now. Guess too high and all your cash is tied up in inventory and now your empty for payroll. Guess too low and you might have a 3 month backlog. (sure, that's a 'good' problem to have, but it's not all good in the hardware world because now you need cash to buy the parts to build the hardware. Banks won't talk to you without years of operating experience under your belt, and you had better hope your investors are willing to help finance inventory growth) My advice: Find a niche market who will appreciate this device and quadruple your price. Perhaps this more expensive version comes with 3 months of a 'sleep expert' (who is an actual person) who analyzes my sleeping patterns and 'customizes' a wakeup/sleep plan just for me (i.e. allow 3rd party experts to improve the experience and thus add value). Or maybe there is margin built in for 'sleep doctors' to sell to their patients/customers. Could the microphone detect and track severe snoring? Sleep apnea affects 6% of our population.. that's a big number. The problem here is people's lives are only being marginally improved, and for $60, too low for any profit after you factor in warranty, support and failures, they are expecting something more. These are not good customers for you. |