Commentary

Consumers See $20+ As Fair Monthly Fee For Fully Smart Home

Consumers have a price in mind for what they consider to be a good value for a smart home.

For most consumers, the minimum price seems to be about $20 a month.

Half (50%) of U.S. broadband households consider $20 or more a month for a comprehensive smart home service to be a good value, according to new research by Parks Associates. On the higher end, 7% say the service would be worth more than $50 monthly.

More than 26 million U.S. households own at least one smart home device, a 35% increase from the beginning of last year, according to Parks.

Another survey by PwC earlier this year found that one in four (26%) consumers own a smart home product with price being the most stated cause of hesitating to get a smart home device.

Yet another study, this one conducted globally by Gartner, found that 10% of households have a connected home solution, though 6% higher in the U.S.

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There are smart home devices, which can be bought and set up by consumers, and then there are smart home systems, often installed and maintained by professional organizations.

The Parks study at least gives an idea of the price barriers for a complete smart home system.

Here’s what consumers see as an appropriate monthly fee as a good value:

  • 23% -- $11 to $20
  • 20% -- $1 to $10
  • 18% -- $21 to $30
  • 13% -- $41 to $50
  • 12% -- $31 to 40
  • 9% -- $0
  • 7% -- More than $50

Of course, the perception of what a comprehensive smart home service is can be somewhat subjective. At least now there is a ballpark of where – and how much -- recurring revenue may be found.

 

7 comments about "Consumers See $20+ As Fair Monthly Fee For Fully Smart Home".
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  1. R MARK REASBECK from www.USAonly.US , March 15, 2017 at 10:18 a.m.

    Give you 20 bucks a month to STAY OUT OF MY HOUSE.

  2. Chuck Martin from Chuck Martin replied, March 15, 2017 at 10:38 a.m.

    You likely would have some company wiht that, Mark.

  3. Paula Lynn from Who Else Unlimited, March 15, 2017 at 10:27 a.m.

    How much will it cost to guarantee your data isn't sold and you won't be hacked ? How much will it cost for just one hickcup ? Put that $20+ into your retirement account which you will need a lot more than being too damn lazy to turn on a light.

  4. R MARK REASBECK from www.USAonly.US replied, March 15, 2017 at 5:24 p.m.

    And with the "hack" you will never know till maybe months or years later.
    Ahhh, just yesterday a HALF BILLION g-mail accounts compromised................
    Who would-a thunk, that the USPS would be the safest way to commuinate these days?

  5. K. Daniel from Self Employed, March 16, 2017 at 4:21 a.m.

    Very interesting article. Thank you for sharing. I am in pursuit of sharing my own experiences with IoT and will be sharing many Amazon Alexa Echo skills integrations with various platforms and practical everyday real-life homebody recipes and assisting. Make sure to check it our as well as bookmark for future experiences and entertainment revolving around Smart Home. www.thesmarthomeninja.com

  6. Steve Reeves from Smart Home Gear Guide.com, April 13, 2017 at 12:23 p.m.

    Huh,

    I wonder what people will expect for their "complete" smart home system.

    Maintenance and tech support?

    I suppose security will also be important but I wouldn't want to be the company promising to protect customers against cyberthreats.

  7. Chuck Martin from Chuck Martin replied, April 13, 2017 at 12:35 p.m.

    Still a long way to go here, Steve

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