The actual temperature at the thermostat can be very different than the temps at or near the eggs. The temps at the egg are what you must concern yourself with. The wafer and water heater thermostat are placed close to the heat source to effect the cycle time of the heating element to regulate toward the correct temperature at/near the eggs. If you dis-assemble a hotwater heater thermostat, you will see that it is just a wafer thermostat encased in a plastic housing. The plastic housing effects the warmup/cooldown time of the wafer and extends the time that the heat source is off or on. The closer you can place it near the heat, the less time it takes it to turn off once the heat source is activated. The actual temperature range at the thermostat might be much higher than the actual temps at/near the eggs.
If you can find a digital thermostat, it will use a temperature sensor that can be placed at/near the eggs. this type of thermostat will generally be much more heat sensitive than the mechanical wafer type thermostats, but be much more simpler to adjust to the desired temps. Proper design of the heating system, as well as air flow is necessary to insure that you obtain even heating inside every cu-inch of the incubator interior, otherwise you could have cool or hot spots resulting in poor hatch rates.