Built an AI SaaS with 78% margins but 0 customers this week - what am I doing wrong?
I built an AI-powered monitoring system for childcare centers. The tech works beautifully, margins are great (78%), but I'm struggling to get traction.
The Stack:
- Python + Flask backend
- Google Gemini for vision AI ($4.35/camera/month)
- PostgreSQL + Redis
- Stripe for billing
- Real-time video processing (20-second clips, motion detection)
The Numbers (brutal honesty):
- Pricing: $20/camera/month
- Gross margin: 78% ($15.65 profit/camera)
- Signups this week: 0
- Active trials: 1 (probably me testing)
- Product Hunt launch: 11 upvotes
- Facebook Ads spend: ~$200 (HKD 50/day × 14 days)
- Conversions from ads: 0
What I've tried:
- Product Hunt launch (meh response)
- Facebook Ads (burning money, no conversions)
- LinkedIn posts (crickets)
- Cold emails to childcare centers (no replies)
What works well:
- The tech - AI accuracy is solid, alerts are instant
- Infrastructure - stable 24/7, auto-scaling
- Dashboard - users love the UI (when I demo it)
- Billing - Stripe integration seamless
What I'm stuck on:
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Customer acquisition: Childcare centers don't browse Product Hunt. Where do they actually hang out online?
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Trust barrier: "AI watching my kids" sounds creepy to some parents. How do I reframe this as "AI helping educators"?
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Sales cycle: Childcare operators are BUSY. They don't have time to evaluate new tools. How do I shorten the decision time?
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Pricing: Is $20/camera too high? Too low? (I see competitors at $50-100/camera)
Questions for the community:
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For B2B SaaS founders: How did you reach your first 10 enterprise customers in a regulated industry (childcare/education)?
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For AI product builders: How do you handle the "AI trust gap" with non-technical customers?
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For anyone: Should I pivot to a different vertical? (Elder care? Pet monitoring? Security?) Or double down on childcare?
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Pricing gut check: $20/camera/month for AI monitoring - too cheap or too expensive for small businesses?
I'm not looking for sympathy - I'm looking for honest feedback. What would you do differently?
P.S. If you want to see the product (no signup required): aegisgates.com
The problem may not be the pricing or the AI accuracy yet. The bigger friction is the frame: “AI-powered monitoring system for childcare centers” sounds like surveillance, while the buyer probably needs reassurance, safety, documentation, and educator support.
I’d lead less with cameras and more with staff assistance. Something like “AI safety assistant for childcare teams” or “incident awareness for busy educators” feels less creepy than “AI watching kids.” Parents and operators need to feel this reduces risk without replacing human care.
Also, childcare is a trust-sensitive category, so the brand has to feel calm and protective. AegisGates sounds secure, but also a bit hard and security-system-like. If you double down on childcare or care environments, a softer care-oriented brand like Lyriso.com would probably fit the buyer psychology better.