Baby Pictures

The folks at TechCrunch covered item a while ago but it has become particularly relevant to me as a brand new father who’s sending out tons of pictures.

Presto has a seemingly perfect solution for sending pictures to a segment of the market that aren’t users of technology but places a high premium on receiving pictures. Since most pictures these days are shared digitally, grandparents seem to be the perfect target market for a solution that allows them to easily receive pictures without a PC.

The problem to me is the pricing. The price for the hardware is reasonable at $150 but $9.99 per month for the service is a bit pricey, particularly when you factor in that a high percentage of that market is on a fixed income.

Full blown dial-up up can be had for $9.95. You’d think it a service like this with a more limited application would be cheaper, no?

Presto is placing a value on simplicity, but part of the issue could be in the cost structure. Presto likely has to buy and resell dial-up access from a wholesaler and can’t make margins without charging rates that are comparable to full dial-up. So, they have a cost structure comparable to providers of full access, but only need to offer a small fraction of the functionality. They charge rates comparable to full access and position the limited functionality as a positive due to increased simplicity.

I wonder how well its working?

Leave a Reply

Your email address will not be published. Required fields are marked *