Ben Einstein has a nice tear-down of Juicero’s $399 juicer:
Our usual advice to hardware founders is to focus on getting a product to market to test the core assumptions on actual target customers, and then iterate. Instead, Juicero spent $120M over two years to build a complex supply chain and perfectly engineered product that is too expensive for their target demographic.
Imagine a world where Juicero raised only $10M and built a product subject to significant constraints. Maybe the Press wouldn’t be so perfectly engineered but it might have a fewer features and cost a fraction of the original $699. Or maybe with a more iterative approach, they would have quickly found that customers vary greatly in their juice consumption patterns, and would have chosen a per-pack pricing model rather than one-size-fits-all $35/week subscription. Suddenly Juicero is incredibly compelling as a product offering, at least to this consumer.