Garmin Business Model=Epic Failure

 

They started with Airplane cockpit units and do not realize that Nuvi is not used by the same demographic.

The units do not last more than a couple of years without repair or expensive service. $700 avg. retail for a unit does not justify the cost.

Now they will sell lifetime map updates but that will not work on two counts: The unit will not be around for more than two years; or it may be transferred to the new owner.......so on both counts its not practical.
Plus, they go through models faster than any other company. Heck, for a small feature addition they will have a new model.
Rather they should have the following:
Offer free feature updates that a consumer can chose to use or not. Charge a user fee of $10/month or $100/yr to include all map updates and all firmware and feature updates.
If the consumer wants to replace a unit or buy a new one, offer 20-50% rebate coupon (depending upon the length of the customer loyalty).
If the unit is discontinued, offer free upgrade.

The goal should be to cover the market share and keep it. They could have a steady customer base and steady revenue source.

Otherwise, pretty soon people are wising up that a gadget that is disposable after a couple of years is not worth more than a couple of hundred bucks.
That's my 2 cents, but I am not running the company.

I suppose someone pays the

I suppose someone pays the full $700 for a brand spanking new unit. But I didn't, nor would I. I purchased my Nuvi 760 this past summer $350 and I'm very pleased with it.

I definitely hope it lasts me more than a couple of years, I will be highly disappointed. I generally only get a 1 or 2 years out of my cell phones, but they are abused much more than my Nuvi. Temperature extremes aside, it is down right babied.

As far as you other points, is Garmin really that far out of line from the 'others'?

Another reason I chose Garmin is that it is mac friendly. Something I expect the others to catch up on as time goes by.

Bear

It is

This is a bigger problem than just Garmin. They feed the masses what they want. When everybody wants a new gizmo every 3-4 months - then that is what companies produce. They charge a premium for it because they know they can get it.

It is when we stop buying the "trash" that isn't built to last that companies will again produce quality products. I am afraid that those days may be too far gone....

Daniel

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Garmin StreetPilot c580 & Nuvi 760 - Member 32160 - Traveling in Kansas

I agree with your comments,

I agree with your comments, and if enough reply, perhaps they will change for the better. Look at Turbo Tax...web comments caused major changes in this last month!!!

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Dave the Beaver

Well I don't mind paying good money for a good product.

bear wrote:

I suppose someone pays the full $700 for a brand spanking new unit. But I didn't, nor would I. I purchased my Nuvi 760 this past summer $350 and I'm very pleased with it.

I definitely hope it lasts me more than a couple of years, I will be highly disappointed. I generally only get a 1 or 2 years out of my cell phones, but they are abused much more than my Nuvi. Temperature extremes aside, it is down right babied.

As far as you other points, is Garmin really that far out of line from the 'others'?

Another reason I chose Garmin is that it is mac friendly. Something I expect the others to catch up on as time goes by.

Bear

However $800 each for a 680 last Christmas that both died on me in less than a year. Then Garmin asks to pay shipping fees......and if it had been longer than 12 months the repair fees.....its not worth it.
I rather pay a few hundred dollars and pay $10 a month for subscription that will cover the hardware and content. Somewhat like a MSFT business model will serve them well.

I guess I don t see it that way...

I've had my Nuvi 260 for a year now, and I expect to have it for the foreseeable future. It does everything I bought it for and I don't expect that to change. I don't need anything but dependable navigation and it does that wonderfully. It's been rock solid to this point.

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Rick - Nüvi 260 - eTrex Summit HC

I could surely buy into it!

Sounds like a win-win approach.

I probably would end up spending more money (Garmin's win!) and be happier with newer features being added constantly (my win!)

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GARMIN nuvi 760 sites.google.com/site/lschwabe/

Garmin Business Model - -

I have only had my 660 and 360 for about a year, but the garmin III Plus I purchased 8 or 9 years ago is still working and a well engineered product.

I believe that what we are seeing in the GPS market today is similar to what we see in the computer market some years ago before standardization came into play.

Not long ago you could only find Magellan and Garmin GPS systems. Then Tom Tom came along and today there is no less than 15 manufacturers of GPS systems. Each tries to grab their market share buy selling bells and whistles. Eventually there will be three or four companies that survive, and fewer model changes.

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Oldrivers http://www.oldrivers.blogspot.com

Cell Phone business model

I am thinking in a few years, GPS will follow the cell phone model.
Sign up a 2 yr contract and free unit.

...

ZedRight wrote:

I am thinking in a few years, GPS will follow the cell phone model.
Sign up a 2 yr contract and free unit.

yeah..and no one will buy em.
cellphones have a contract only because voice calls use up network bandwidth and cell infrastructure to connect.
i use about $20 every 6 months on my cell phone (prepaid, no contract at&t go). Rest of my calls are made using skype and my phone connects wirelessly with my home wifi to skype or at the office to my office wifi. i have no data plan. on the road i use my prepaid minutes (rarely) or let the call go to voicemail. skype also does SMS.

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GPS Models : 60CSX w/2GB Kingston (stolen), 32GB Samsung INNOV8 with Garmin Mobile XT(8GB), NUVI 760 w/16GB PSF16GSDHC6 (DIED in 30 days), V (died), Nokia N8 with Garmin Mobile XT(48GB), Blackberry Torch with Google Maps.

How To Fix It

The solution is simple.

This is America and Americans vote with their money.

Just buy the products you like.

Over time, any issue will be self resolving.

I sincerely believe Garmin will be in there when the dust settles.

how to fix it!

RayHff wrote:

The solution is simple.

This is America and Americans vote with their money.

Just buy the products you like.

Over time, any issue will be self resolving.

I sincerely believe Garmin will be in there when the dust settles.

Your absolutely correct, Americans do vote with Greenbacks. And it you spend or spent more than $200.00 for a GPSr this Christmas season you got more than a GPSr.

With CES happening as I write this you can bet, what you over paid for last month will plummet in price the next few.

At least I can say Garmin hasn't as of yet left their customers high and dry as they obsolete units faster than I change my underwear, and at least keep firmware updates coming for units going way back.

Now if you want to put a stop to units becoming obsolete so fast you can't even take a trip with one before it does. Refuse to buy them, hold your older technology till it craps out.

Older streetpilots III had it all, only lacking memory. From that point on Garmin began to strip features and make different models of it, and haven't stopped all the way through the Nuvi series.

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Using Android Based GPS.The above post and my sig reflects my own opinions, expressed for the purpose of informing or inspiring, not commanding. Naturally, you are free to reject or embrace whatever you read.