Verkada Ironically Markets Against Sunk Costs
While Verkada's Hostage as a Service business model is built on making it hard to get out, Verkada is ironically marketing against its non-hostage competitors.
In this note, we examine how Verkada's $250 per replaced competitor camera campaign emphasizes sunk costs and how it signals an even greater risk of getting locked into Verkada.
Executive *******
*** ******* *** ********* ******** ******* this ******* ***** *********** (** ********** will ** **** *****) ****** "**** costs" ** / **** ********* **** to **** **** **** *******. ******* Verkada ******** ******* ***** "**** *****" in *** *********, ** ** * key ******* *******'* ******** ********** ** a ******** ** ********* *** *******. Recall*******'* ******** ***** ****-***** *** ******** ** **** ***** and ********* (***** ***** ** *** report).
****** **** ***** *****, **** ***** has **** ******* ********** *** *******. Once ** ************ ** ** *** Verkada *********, ** ********* ** ****** to *** ***** ******** *** ********* (e.g., *******, ******, ****** *******, *******, etc.), *** *** ********** *** **** of ********* / ****** **** ******** significantly, ********* ** **** ********* *****.
****, ******* ***** **** ** *** integrate *******'* **** ******* **** ***** systems *** ****** *** ***********, **/**** subscriptions ** ******, *** **** ** locked ***, *** *** ******* ** longer ****. *** ****, ****** ******* ***** *** *** ** The ******* *** ***.
Sunk **** *********
*******'*"***** ********** *******" ************** *** "**** *****" *****, *********:
**** "**** *****" ******** ** ** Verkada's ********* ********* ************* ** ****:
No *** ***** *******
******* **** *** ***** * *** party ****** / ******* ** ***** non-Verkada ******* **, ********* ** ****** switching ***** *** ***** ********** ** using **** ******* ** *** *** not ***** *** ***** ******* **** Verkada's ****** *** **** ********** **** to ******* ****.
Recall ******* ******** "*** **** ****"
** *** ******** ****, ******* *** a ************* *** ***** ****; *********, those ********* ****** ********* ***** **** in *******'* ********* *** ***. ***** its ******** *****, ************ ********** / end-to-end *********, *** **** ** ***, it ******* * *********** ******** ** its *********. ****** *** ******** ****** "big **** ****" ** ******** *** a **% ******* ****:
Recall, ******** ***** ****-**
** *** ******** ****, *** ********* who *** **** ** **** **** from ******* ** **** ******** ** add **** ** *******'* ************ ********** / *********** ********, *** ********* ***** become *******, *** ****** ** ***** invested *********, *** ****** **** ******* more ********* *** ****** *** **** to ******* **********'* ******** *****(*** ******), **** *** * ***-****** explainer:
Sunk **** *******
**********, ***** *******'* "*******-**-*-*******" *****, *** devices *** ********* **** *********** ******** through **** ******* ***** *** ** as ******* "**** ****" ****** **** want ** **** ****. ************, ** device ************* ** ****** / *****, you *** ****** *** ** *** devices *** **** ***. *** ****, see*** ******* ***** *** *** ** The ******* *** ***.
Outlook
** ********** ******** *** **** ********* / ******* **** ** *** ****** with ******** **********, ****** ******** ******, new **********, ***., ** ** ********* to ******** **** ***** *** ********* costs. ******* ***** ** **** ** providing *********** ****** ************ ******* ********* a ************.
***********- *** **** ****** ** ******* the ****-**** ******* **** **** (**-****** emotionally ********* ** ****** **** * system **** **** ******* ******** **?)
*************- **** **** *** ** ** green ***** *************, ** **** ****** does **** **** **** *** ***** sales ****.
* ***** ** "**********" ****.
* ******** ***** *** ******** ****** read: "******************* ******* ******* **** *****"
***** ** ** ********* ****** *** them ** ** ***** **** * thing - ***** ** *** *** things ********'* **** ****** *** - if ****************** ***** ** *** ********* ** create ********* ******* **** *****, **** this *** ********* ******** ********************** * ********** ********* ****** **** what **** **** ************ **** ***** for.