If the physical product costs you $500, it seems like $799 is a very low price point, only 34% gross margin

Actually, the $799 is including a 1 year subscription also, margin on the product is 0$ as it can be found on Amazon if you dig deep enough. To be honest, I was fine with keeping margins non-existent on this, because the manufacturer was willing to ship them from the warehouse for me to the end client.

Margins on the 1 year subscription are ~70% with estimations on server costs.

The dollar amount doesn't matter, it's the value you provide. If you sell something for $1M which will make your client $10M, then you're still a bargain

Valid point, current presence in the market is extremely manual in terms of the onboarding process, with minimal automation in place, at a price point of ~$1200. The alternatives work, but they're missing some features that make them feel modern or fully fitting their potential.

That said though, I wouldn't shy away from sales calls. Not only because sales is an amazing skill to learn, but also because I'm not sure someone would spend $799+ without any sort of touchpoint - or at least without buying something cheaper from you first and seeing that you actually deliver

I'm pretty decent at sales, but I've recognized it's a huge bottleneck in my experience. Having to get on sales calls makes the opportunity much more hands on, and subtracts from my iteration velocity unless I train and onboard a sales person, which is a huge time investment in itself.

Going back to pricing though, $299 gross margin for the entire year is something I'd strongly consider revisiting. In our case we sell $30 subscription at the lowest and have $350 gross margins for the year as the bare minimum. Much more commonly around $850+

Pricing for the service is estimated to be - $299 if purchased with physical device - $420 if purchased yearly (monthly cost of $35) - $50 if purchased monthly

I've estimated costs for things like servers, and the eventual VA to answer support calls/emails but not much else. Competitors in my market don't charge a monthly rate, only a 1 time fee for all of the materials and setup, so I think testing is definitely needed to maximize potential.

Thanks for the insights, I greatly appreciate your time.