SkillVari adapts its go-to-market strategy by geography. In the US, they focus on the large high school and community college vocational training market. Conversely, in Europe and Asia, their primary customer base consists of industrial companies conducting in-house employee training.
For its $5k average deal size, SkillVari found a direct US sales model unviable, as travel costs could erase profits. Instead, they built a network of 10 regional resellers, incentivized with commissions up to 20%, to provide local, hands-on demos and support.
After pivoting from hardware to software, SkillVari found value in reintroducing proprietary hardware (like a $2,500 welding gun) as optional accessories. This hybrid model leverages commodity headsets while capturing additional revenue and creating a more immersive, defensible user experience.
When the pandemic decimated their hardware business, SkillVari's founders bought out their investors for 50 cents on the dollar. This move gave them freedom to pivot to a software-led model and capture all subsequent upside, turning near-zero revenue into a $1.5M run rate.
Instead of building expensive hardware, SkillVari's software runs on affordable, off-the-shelf headsets like Meta Quest. This allows a starting subscription of $4,000, drastically lowering the barrier to entry compared to competitors whose one-time purchase solutions cost over $35,000.
SkillVari uses a land-and-expand model where schools start with a low-cost software plan using standard VR controllers. As students advance, schools can purchase higher-margin hardware extensions like welding guns, increasing account value over time without a large upfront commitment.