Roomba as High Margin Product

Do you Roomba? Probably not yet. Roombas are robot vacuum cleaners, and the company iRobot has been selling them for around 10 years. It has also been upgrading them. The latest model, the 880, is starting to look like a nice high margin product. Why?

Well,  nearly all of us have to worry about cleaning the floors in our house on a regular basis. And it is not a job that we enjoy doing. What if we didn’t have to worry about it at all? What if it could be done by a machine while we sleep? The machine wakes itself up, does its job and goes back to its re-charger without the need of any human intervention. And it does not make an enormous racket while it works. As NYT reports, this is pretty much what the 880 does now.

This is what it looks like

Would you like one? Now, would you pay $700 for it?  My guess is that the $700 price tag would scare off quite a few buyers – but not all. And as the Roomba keeps getting better, it will look better and better.

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