Agtech headlines scream “revolution,” but when the bill hits 100k THB per hectare, Thai smallholders tune out. At KhawTech, we’re from the fields—we price like farmers, for farmers. No VC-fueled markups; just solid unit economics that deliver 60-90% margins while keeping co-ops profitable. Sensors at 1,500 THB, gateways at 15,000 THB, NaLog SaaS at 6,000 THB/year. A 200-sensor cluster? Co-op pockets 200k+ THB profit, payback under one rice season. Let’s crunch the numbers: BOM costs, selling prices, and why this model scales adoption across Isan.
The Pricing Philosophy: Affordable from Day One
Big ag players charge premium for “smart” gear—drip systems at 50k THB/rai, cloud subs at 1k THB/month. We flip it: Build cheap (in-house LoRa/AI), sell fair (co-op shared), profit sustainable. Rooted in our Yasothon roots—every THB counts when diesel’s up 20%.
Core principle: Payback <1 season. Water savings (25-35%) cover costs fast. No financing traps; cash or co-op pooling. We’ve seen zero-marketing uptake because numbers add up.
Ties to our shop—transparent pricing, no hidden fees.
Breaking Down the Stack: BOM to Selling Price
Here’s the math, straight from our Kut Chum builds:
| Item | BOM Cost (THB) | Selling Price (THB) | Margin | Who Pays | Notes |
|---|---|---|---|---|---|
| AWD / Irrigation Sensor | 600 | 1,500 | ~60% | Co-op / Farmer | IP67 LoRa unit, 2-year battery. Per rai: 5-10 sensors. |
| Edge-AI LoRa Gateway | 1,700 | 15,000 | ~90% | Co-op / Tambon | Covers 5-10km, offline AI. Solar add-on +500 THB. |
| LoRa Server + NaLog SaaS | 2,400 | 6,000/year | ~60% | Co-op / Tambon | Dashboard + cloud sync. Tiered: Basic free, premium unlocks. |
- Sensors: Cheap components (MCU, sensors, LoRa chip) from AliExpress/Shenzhen. Assembly in Thailand—quality without import duties.
- Gateway: Raspberry Pi Zero + LoRa module + enclosure. High margin funds R&D; volume drops BOM to 1,200 THB at 1k units.
- NaLog: Software moat—recurring revenue without hardware scale. Year 1 includes setup; renewals drop to 4,800 THB.
Total for starter cluster (1 gateway + 50 sensors + NaLog): BOM ~37k THB, sell ~90k THB. Co-op margin: 53k THB. Scale to 200 sensors? BOM 130k, sell 315k—185k profit.
Co-Op Economics: Shared Wins, Real Payback
Co-ops are Isan’s backbone—shared pumps, bulk buys. Our model leverages that:
- Example: Yasothon 200-Rai Co-Op: 200 sensors (1k THB/rai avg), 1 gateway, NaLog. Total sell: 315k THB. They pay 150k (subsidized pilot), we cover rest for data rights.
- Savings Side: 30% water cut = 100k THB fuel saved/season. Yields +10% = 50k THB extra rice. Net: 150k THB gain.
- Profit Split: Co-op sells service to members (500 THB/rai/year)—another 100k revenue. Total win: 200k+ THB/year.
- Payback Calc: Hardware recoups in 4-6 months via savings. SaaS? Locks in with dashboards showing ROI daily.
One Ubon co-op pilot: “Priced right—no bank loans needed. Savings paid for everything by harvest.” Vs. competitors: Their 50k THB/rai setups bankrupt smallholders.
For products, see AWD tube or ESP32 LoRa—all co-op friendly.
Why This Model Scales: From Pilot to Nationwide
Margins fund growth: 60% on hardware, 80% on SaaS. Churn low—once NaLog shows wins, co-ops stick. 2023 goal: 10 clusters, 2M THB revenue. By 2026? 100 clusters, 20M+.
Challenges: Supply chain (solved with local PCB fabs). Policy tailwinds: Thailand 4.0 grants cover 30-50% for co-ops.
It’s not charity—sustainable business that prices adoption first. Thai agritech proving: Profit and purpose align.
Price Your Way to Smarter Fields
Ready for economics that work? Email [email protected]— we’ll model your co-op’s numbers, free. Making tech accessible, one fair price at a time.
Alberto Roura, KhawTech Founder. Farming family turning edge-AI into tools every Thai smallholder can afford—inspiring the next wave of inclusive agritech.