Jason Johnson has a bone to pick with the lowly door key.
The CEO of electronic door lock maker August describes keys as being "really kind of annoying" in today's digital age. In contrast to spending hours on their smartphones, people generally use their keys only once or twice a day.
Still people keep their keys on them, despite the discomfort of stuffing them in pockets, Johnson said. That is, of course, if they don’t lose them--another problem with their small size.
"Metal keys are very anachronistic," Johnson said. "You just don't need them anymore."
His solution is smart locks, Internet-connected gadgets that are wired to open and close doors using a smartphone app. By spending a little extra money on another Wi-Fi accessory, August’s customers can also use their smartphones to remotely open doors for their dog walkers or plumbers so they don’t have to be at home to let them in.
It's a convenience that's worth the significantly higher price for August's locks, Johnson believes. His company’s original locks cost hundreds of dollars, or several time more than traditional door locks, and mostly appealed to tech savvy users with a lot of money.
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On Tuesday, August hopes to push into the mainstream by debuting its two cheapest locks yet. The August Smart Lock Pro, which costs $279, comes with the Wi-Fi device (normally sold separately for $80) for opening doors remotely; this bundle is cheaper than before when people had to buy the two products separately. Meanwhile, an updated version of the flagship August Smart Lock is also now available for $149, $80 less than the previous version of the same model.
Both versions come with August's Door Sense that alerts people through their phones when their doors have been opened or closed. Additionally, August is selling a newer version of its web-connected security camera, but the price for that device will remain at $199.
The lower price for the company's smart locks is intended to lift sales, which Johnson declined to disclose. But he said that people in "the major metropolitan areas are the biggest buyers," suggesting that August's smart locks aren't selling as well where disposable incomes are lower.
"This is us going bigger, going wider," Johnson said.
Johnson said that Walmart CEO Doug McMillon "has tried to educate me" about the buying habits of mainstream consumers with less money to spend. A product that sells for over $200 risks turning off average consumers who may not be used to spending big bucks on things like web-connected doorknobs, no matter how interested they may be, Johnson explained.