IoT technology is capable of conforming to almost any industry. As the cost curve continues to decline, companies benefit from competitive pricing strategies. The advancement of technology allows companies to experiment with different platforms and price ranges.
According to Microsoft, the average price of an Internet of Things (IoT) sensor has declined from $1.30 in 2004 to $0.44 in 2018. As technology continues to advance, so do business models. Vendors have begun adopting software-as-a-service (SaaS), and with that, customers have taken advantage of the cheaper IoT sensors, increased connectivity, and software platforms.
One of the more popular pricing strategies in use today is subscription-based. With a subscription plan, vendors can factor in discounts for year-long contracts. Subscribers pay the same amount every month, no matter how much they use the system. By providing IoT technology with pricing models, companies can adjust pricing according to how much the customers use. Now, customers only have to pay for what they use.
As times change, so does technology. IoT will continue to advance to keep up with other advancements. Experts are predicting that companies will be able to anticipate total costs of usage. Instead of customers paying for the usage post-use, customers will be able to pay upfront for expected costs. This pricing strategy will help companies plan their costs, ultimately saving them money.
IoT technology allows companies to take advantage of the product-as-a-service model. Companies can rent equipment to their clients, and track the location and usage. Instead of paying full price, a company can use a lease-like model and track all of that data within a single interface. Such IoT asset tracking and monitoring systems can provide greater and more immediate impact on a customer’s ROI.
Link Labs is an asset tracking solution provider that includes an IoT platform where users can visualize asset location and condition in real time. Our team of experts are leading innovators for IoT technology. Everyday, we are making advancements to our IoT technology platform so that our customers have the most leading-edge solution on the market. Learn more about Link Labs and our AirFinder solution by booking a demo today!