Ooma Forums

I just noticed today that the Telo is $199 at Best Buy, I got my $50 adjustment.. If anyone else is looking for one, there's a good discount for you, just read the forums first before you jump to make sure you're ready for the hassle.
-Keith

Telo is also $200 at DELL.
Amazon has theTelo for $227 with $40 gift card, for a net $187.
Costco: $230... gets : Telo + $100 International + 6 months Premier.

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allo wrote:Amazon has theTelo for $227 with $40 gift card, for a net $187.

It was $199 with the same $40 gift card 2 days ago, then they ran out of stock and when it came back in stock, they raised the price to $227.

sfhub wrote:

allo wrote:Amazon has theTelo for $227 with $40 gift card, for a net $187.

It was $199 with the same $40 gift card 2 days ago, then they ran out of stock and when it came back in stock, they raised the price to $227.

Amazon prices fluctuate all the time. Generally I add stuff to my cart and track when the prices appear to be at a low then pull the trigger. I got my Telo last Thanksgiving from Amazon for 199 (no rebate offered at that time).

got mine at Costco, they still have a good deal-$229/6months free premier/$100 prepaid international calling.
Got mine for $199 plus all those goodies in Dec-Still looks like a good deal to me though. Love mine.

It seems like margins are starting to get razor thin on the hardware. It used to be $400-$500 for an Ooma. Now sub $200 pricing. I wonder how this changes the business model. I think the old model was that the expensive hardware subsidized the service. Maybe we are seeing a change to that model, one where the service prices will increase to subsidize the declining hardware prices.

Ooma was originally released at $399 in Sept 2007. This was supposed to be an introductory price and the price was supposed to go to $599 in 2008. I'm pretty sure they never raised the price to $599.

That price included the Premier features (lifetime premier) at no additional cost.

In April 2008, they lowered the MSRP to $249 and started charging separately for Premier (their current business model). https://www.ooma.com/media/press-releas ... ce-bundles

Any retailer that prices the Telo below $249 is cutting into their own margin and shouldn't affect what Ooma is getting per unit sold.

joeed2 wrote:It seems like margins are starting to get razor thin on the hardware. It used to be $400-$500 for an Ooma. Now sub $200 pricing. I wonder how this changes the business model. I think the old model was that the expensive hardware subsidized the service. Maybe we are seeing a change to that model, one where the service prices will increase to subsidize the declining hardware prices.

Well at first Ooma had alot of start up cost to cover so the price was steep.

As far as margins on the hardware, I dont think so, at least Ooma better not be overpaying for the quality, I honeslty feel the Telo is pretty cheap feeling, and there is not much inside the box either to be that expensive.

Ooma does rely on profits from the hardware sales.

Honestly I think the packaging cost more than the hardware.

bw1 wrote:... Any retailer that prices the Telo below $249 is cutting into their own margin and shouldn't affect what Ooma is getting per unit sold.

Great point.

And Amazon like Costco likes to make profit through volume of sales.

kelkin wrote:I just noticed today that the Telo is $199 at Best Buy, I got my $50 adjustment.. If anyone else is looking for one, there's a good discount for you, just read the forums first before you jump to make sure you're ready for the hassle.
-Keith

How can you get your $50 adjustment, did you get $199-$50 or $249-$50?