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I am currently designing a data logging system for an interested party. The cost of the items assembly and purchase is about $100 (board, power supply, 2 sensors). I want to get lets say 15$/month subscription out of this, to offer analytics, SMS, and whatever else comes to mind in the future.

Do I:

  1. sell him the equipment and ask for a subscription? (without a subscription the data logger is useless)
  2. lease him the equipment ($100 once) and ask for a subscription? (without a subscription the data logger is useless).
  3. sell him the equipment with a minimum functionality and offer optional subscription? (what is the new price $100 + ? in case he does not want the subscription?)
  4. do something completely different?

PS. I want a subscription...

  • Does the equipment have any value to you if the customer no longer wants it? – Charles Fox Oct 11 '19 at 18:33
  • only if i apply the third bullet point @CharlesFox – George Pamfilis Oct 11 '19 at 18:37
  • What does your customer want? What's the expected timeframe they'd want to use this over (do you expect them to keep it for years, or do you expect people to move on after a few months)? Is this really just one customer? – dwizum Oct 11 '19 at 18:39
  • its one customer now. but other locals will follow its cheap, easy and usefull. lets say they use it for 1 year if the subscription is at a proper price. – George Pamfilis Oct 11 '19 at 18:41
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    I'm voting to close this question as off-topic because it is a question about small business that has no bearing on personal finance. money.stackexchange.com/help/on-topic – RonJohn Oct 11 '19 at 18:42
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PS. I want a subscription...

Then make it a subscription service and lease them the hardware.

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  • And factor the cost of the hardware into the subscription fee. – Simon B Oct 11 '19 at 22:24

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