• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

3

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45

1

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer

2

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

3

Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
TechAugust

August Debuts Cheaper Smart Locks for the Masses

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
September 19, 2017, 12:01 AM ET

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.

Get Data Sheet, Fortune’s technology newsletter.

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.

It may seem obvious that cheaper prices mean more mainstream customers, but it’s apparently something McMillon had to learn, especially as the company eyes a bigger market. August’s various locks and product have earned good reviews, but it seems like its high-price has deterred some would-be buyers.

“When you get closer to $100, it is something people can try,” Johnson said.

Even with its earlier locks, August had convinced retail giants like Walmart (WMT), Lowe’s (LOW), and Bed Beth & Beyond to sell it products. That will continue with the latest versions of August’s products.

As part of its push into cheaper locks, Johnson said August is trying to lower its costs including reducing the manpower needed to assemble its products, presumably through various automation technologies. But the company still spends big on product development, and it hasn’t cut overhead like the expensive customized, Japanese motors used in its smart locks.

Johnson did not say whether his company is profitable or what impact selling cheaper locks will have on its business.

August received $25 million in funding in July that it’s using to help it debut its new products and expand to more retail and online stores like AT&T’s various shops, Johnson said. Some of August’s investors include Bessemer Venture Partners, Comcast Ventures, Qualcomm Ventures.

Although August has previously created commercials for its smart locks, it plans on “going bigger” with marketing this time, Johnson said. Over the next few weeks, it will buy commercial time on TV networks like CNN.

Still, it’s unclear whether mainstream consumers can be convinced to buy August’s new smart locks, even with the price drop. After all, a conventional door lock can still cost less than $20.

As for the metal keys that he rails against, Johnson still keeps spare copies at his home.

“I’m still a believer that you should have a key as a backup,” Johnson said. “It’s a fail safe.”

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Exclusive: Consumer device giant LG Electronics to launch blockchain to place and sell ads
CryptoBlockchain
Exclusive: Consumer device giant LG Electronics to launch blockchain to place and sell ads
By Jack Kubinec and Ben WeissJune 11, 2026
4 minutes ago
As SpaceX goes public, a $100 billion shadow market faces a reckoning
Startups & VentureSpaceX
As SpaceX goes public, a $100 billion shadow market faces a reckoning
By Allie GarfinkleJune 11, 2026
38 minutes ago
The real hurdle to enterprise AI isn’t fixing productivity KPIs. It’s ‘unlearning’ old habits, experts say
Future of WorkBrainstorm Tech
The real hurdle to enterprise AI isn’t fixing productivity KPIs. It’s ‘unlearning’ old habits, experts say
By Sebastian HerreraJune 11, 2026
42 minutes ago
After backlash, Anthropic says its AI will now tell users when their request is being rejected or downgraded for national security concerns
AITech
After backlash, Anthropic says its AI will now tell users when their request is being rejected or downgraded for national security concerns
By Marco Quiroz-GutierrezJune 11, 2026
51 minutes ago
Agility Robotics Chief Executive Peggy Johnson speaks on stage at Brainstorm Tech 2026 in Aspen, Colorado.
AIBrainstorm Tech
Tech leaders argue AI’s real future Is task augmentation, not mass layoffs
By Sebastian HerreraJune 11, 2026
1 hour ago
‘China follows Musk very closely’: While SpaceX blocked Chinese investors from IPO, China’s space firms prep their own as a counterweight
AsiaSpaceX
‘China follows Musk very closely’: While SpaceX blocked Chinese investors from IPO, China’s space firms prep their own as a counterweight
By Mia OsmonbekovJune 11, 2026
1 hour ago

Most Popular

Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
Energy
Analysts expected oil to surge above $200 but China has quietly kept prices half of that—and can’t for much longer
By Sasha RogelbergJune 10, 2026
24 hours ago
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
3 days ago
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
Innovation
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
2 days ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
3 days ago
Current price of oil as of June 10, 2026
Personal Finance
Current price of oil as of June 10, 2026
By Joseph HostetlerJune 10, 2026
1 day ago
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
Environment
Corporate America has been draining the world's water. Matt Damon's new campaign calls on Gap, Starbucks, and Amazon to help give it back
By Catherina GioinoJune 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.