on 04-19-201301:02 PM - last edited on 04-26-201301:00 PM by Deleted Account
Last week Network Computing published an article covering the announcement of UniFi 3.0 and our 802.11ac access point. Overall the article was great and I’m appreciative that Network Computing wrote about our announcement.
One thing that that caught my attention though was the headline, which read “Ubiquiti Rolls out 802.11ac APs on the Cheap”. It got me thinking about whether our products are “cheap” or is everyone else really over-priced?
In 1983, Compaq introduced the first “portable” PC at a cost of $3590. The cost in present day dollars would be roughly $8000 and it wasn’t really that portable – it was the size of a sewing machine and weighed 28 lbs. I read this morning that Intel predicts that by the end of this year we’ll be able to buy touch-enabled laptops as low as $200. The first cell phone, the Motorola DynaTac (affectionately nicknamed ‘’the Brick”) cost $3995!
The technology industry has a long history of increasing performance while reducing prices. What was affordable last year is over-priced today. I would argue being first to take advantage of the opportunity to increase price/performance is smart, not cheap.
Ubiquiti is focused on making networking technology accessible to everyone via a disruptive pricing model. Our products typically sell at 80% below competitor’s prices for comparable performance. To make that happen we eschew some traditional industry practices that we believe add unnecessary costs:
We don’t employ sales people. Instead, we rely on the transparency of the Internet and the word of mouth evangelism of our customers.
We leverage the knowledge and expertise of our user community to provide support for other customers beyond what our support organization provides.
We avoid building products with an exhaustive list of features that most customers will never need nor use.
The more I think about it, the more I’m convinced that the industry suffers from a distinct lack of perspective. It’s not that Ubiquiti is cheap, it’s that everyone else is over-priced—in some cases ridiculously over-priced.
I’m going to explore this theme in more detail in future posts. I think you will be shocked at what your dollar of purchasing power buys you. Share your thoughts and stay tuned.