Case Study:

Beacon Client Saves 60% on Monthly Cellular IoT Service Costs; Now Has Margin to Expand Product Portfolio

The situation

"Our current IoT service costs are preventing us from executing our Product Strategy."

- Client President

  • Client manufactures and manages scanners, shredders and other office equipment

  • Offers customers a monthly “asset monitoring” service that's powered by Cellular IoT

  • Initiated IoT service in 2013 with a popular IoT data “reseller”

  • Had renegotiated pricing with the reseller in 2017

  • Cellular service rate of $11.75 put a lot of pressure on current product margins, and made planned, future functionality cost-prohibitive

  • Client had no market intelligence on fair/current Cellular IoT rates

"We see this all of the time: A company that signed up for IoT service in 2013, has anchored their pricing expectations to those 2013 rates, and has no idea how much prices have dropped since their original contract."

Spencer Freeman

President, Beacon Pricing Advisors

  • Assessed the Client’s current IoT agreement and recent monthly service invoices

  • Beacon informed Client that they should be paying sub-$5 given their use-case and volume; deliverable also outlined other cost-savings tips for Client’s upcoming product and geographical goals

  • Beacon facilitated IoT service discussions between Client and several Telecom Carriers

  • Client’s preferred Carrier initially quoted price of $9 for the same amount of data Client used with current provider

  • Beacon was ultimately able to negotiate Carrier terms from $9 to $4.75

- Spencer Freeman

  Beacon Pricing Advisors

"Companies are happy to receive a 10-15% discount from their IoT service provider every few years...little do they know that market prices had actually dropped over 50% during that same period."

What Beacon did...



Client's monthly Cellular IoT service costs reduced by 60 percent



3 weeks from Engagement Kickoff to presentation of Cost Optimization Plan deliverable


7 weeks from Engagement Kickoff to Carrier approval of satisfactory service rates

Please contact us to learn more about these Case Studies and other successful projects.  We offer a free initial assessment of your current Cellular IoT pricing.