OT Question here:
As an solutions provider to our customers, we are getting more and more into the IOT world with remote monitoring. We have various requests for custom control panels with monitoring capabilities included, such as municipal lift stations or machine OEMs.
Our question here is how do other folks typically bill this to the customer? Using a cloud based system, we have subscription costs to our vendors. Most of these are going cellular so there are cellular charges as well. So the question is about these ongoing charges.
Do you bill this monthly or yearly to the customer?
Do you keep profit very low on the initial install/setup and set the subscription rate high enough to make your profit over the next couple years? This is what it seems like some people are doing because it is easier to get a small initial figure approved.
In the past (just a few setups), we made good profit on the initial install, then set the monthly subscription at enough to cover our own subscription costs plus enough to cover the time to do the paperwork etc.
We have an OEM that could likely be doing 100 units/yr. We are looking for advice on the best way to manage it so that these ongoing subscription costs do not become a nuisance.
As an solutions provider to our customers, we are getting more and more into the IOT world with remote monitoring. We have various requests for custom control panels with monitoring capabilities included, such as municipal lift stations or machine OEMs.
Our question here is how do other folks typically bill this to the customer? Using a cloud based system, we have subscription costs to our vendors. Most of these are going cellular so there are cellular charges as well. So the question is about these ongoing charges.
Do you bill this monthly or yearly to the customer?
Do you keep profit very low on the initial install/setup and set the subscription rate high enough to make your profit over the next couple years? This is what it seems like some people are doing because it is easier to get a small initial figure approved.
In the past (just a few setups), we made good profit on the initial install, then set the monthly subscription at enough to cover our own subscription costs plus enough to cover the time to do the paperwork etc.
We have an OEM that could likely be doing 100 units/yr. We are looking for advice on the best way to manage it so that these ongoing subscription costs do not become a nuisance.