AI Startup Camect Pivots To Monitoring Centers (CEO Interview)
Despite Camect's AI analytics performed well in IPVM tests the company told IPVM its direct-to-consumer sales model struggled to scale. The company has now pivoted to providing video monitoring centers at competitively low prices. How does this impact its outlook?
In this report, based on an interview with the CEO, we examine Camect's change in go-to-market, challenges to its growth and share the company's plans for market expansion and value proposition.
Competitively Low Prices
Camect told IPVM that overall solution cost was foremost in their mind during development because they were targeting consumers, highlighting its low-cost hardware, and using an embedded GPU on fairly low-end Intel CPUs to keep the costs to $1-$2 per camera per month.
The basic premise of our company, is that anybody that is willing to pay for a monitored alarm would probably be interested in having monitored video if the price were right. So there's a huge chunk of the market right now that only has monitored alarms and not monitor video. So our basic goal is to move the solution down market a little bit.
The Co-founder Mukherjee said they are planning to keep prices low to attract a larger market:
We're not interested in raising our prices to match competitors, we could make a lot more money in the short term, but then we will be looking at a much smaller market. Our goal is actually to try to give our partners offerings that appeal to literally the entire residential market, not sold directly by us.
While it is clear Camect's pricing is low and competition is increasing, Actuate's CEO, a competitor, claims that "price wars" are "killing the entire category" of video analytics startups.