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PricingSaaS

603 members • Free

19 contributions to PricingSaaS
SaaS pricing vs timeshare seminar
https://www.linkedin.com/posts/marcussheridan_this-is-so-ridiculous-a-team-member-of-activity-7302699723885326336-97g4?utm_source=social_share_send&utm_medium=android_app&rcm=ACoAADipAOoBbvkfKaUA3ujNjcEfIDfPaLZR4iw&utm_campaign=copy_link A while back I read an an example about responding to the question "how much does a truck cost?" Sales rep can either ask a dozen follow up questions and give a tighter range as the first numeric response or say a broad range and then use the questions to find out what the customer values. "We have models from $18k - $125k that are designed for different needs such as towing, cargo capacity, luxury interiors and even fitting multiple children carseats. Let's talk about how you plan to use your truck" Buying a timeshare vacation property is a notoriously shrouded process where people are intoced by a few nights free stay, a fancy meal or some other perk to sit through a sales presentation. Even this seems better than a lot of b2b SaaS companies who want to email SPAM you and set time killer meetings instead of just publishing their pricing and packaging.
SaaS pricing vs timeshare seminar
0 likes • Mar 5
@Rob Litterst I'm curious too, but this unique culprit aside, it's bizarrely common.
Competitive intel
Are there any free websites that provide information on companies' pricing strategies and list prices?
2 likes • Nov '24
@Rob Litterst I follow your work and it's really deep and insightful.
Value metric update
Hi team, is there any public case study that talks about how an organization with consumption-based pricing model moved from one value metric to another one? What are the operational steps they followed?
1 like • Oct '24
The book the Pricing Model Revolution has some examples here. Salesforce.com is in the middle of this transition from seat based model where many authorized users never login to price per AI query. -- Kyle poyar writes a lot on this topic on LinkedIn https://www.linkedin.com/posts/kyle-poyar_pricing-ai-monetization-activity-7252658661263577088-sryV?utm_source=share&utm_medium=member_android
Greedflation -- is it real?
Atlantic interview with an economist digging into inflationary causes especially in the grocery industry. Lots of great references to academic research in supply chain, and behavior concepts like price wars, prisoners delimma, rocket/feather pricing... Whitelable/store brands get a focus near the end. (It's entirely US centric discussion, FYI for this broader global audience.) https://www.theatlantic.com/podcasts/archive/2024/10/greedflation-inflation-grocery-prices-corporate-greed/680432/?utm_campaign=the-atlantic&utm_content=true-anthem&utm_medium=social&utm_source=linkedin
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How to price AI in SaaS
I'm writing a guest chapter on AI pricing for another authors upcoming book. So I'm thinking about this a lot lately, and wanted to give you a sneak-preview of a linkedin post that will come out later next week. - I've done maybe 10 pricing projects involving significant AI functionality this year. Here is how I think about it. AI should be considered a 2-layer stack: 1️⃣ The AI compute 'fuel' (i.e. token pricing at OpenAI) 2️⃣ The AI solution (i.e. the value you add on top of AI) The dilemma with AI pricing is that currently: ◾ Fuel is expensive - at least way more so than traditional SaaS. ◾ Solutions are immature and early stage, not yet adding a lot of value. So any AI pricing model needs to both work today AND tomorrow. AI PRICING TODAY: 🔹 Charges usage-based on fuel consumption to ensure costs are covered, as usage patterns of customers is often unpredictable. 🔹 Is mostly focused on low barriers to entry to get users onboarded in order to develop the solution layer and get data on behaviour and cost patterns. 👉 This is unsustainable as fuel costs will drop and 2025 customer will refuse to pay a price-per-token (or token equivalent) that is based on 2024 token costs. This is especially true for enterprise. AI PRICING TOMORROW: 🔹 Charges based on the outcome created by the solution layer and just factors in fuel costs in the use case. 🔹 Protects against cost-downside of over-usage with 'fair usage limits'. HOW I SOLVE FOR THE TODAY-TOMORROW PROBLEM IN AI PRICING 🔸 Focus on speed: just get usage and adoption as fast as possible. You likely have a core non-AI product that monetizes just fine. Consider AI a 'development budget' and focus on profitability later. 🔸 Tell customers you are BOTH charging for fuel and for a solution outcome. Educate them. But keep it 90% fuel and 10% solution early on. 🔸 Over time: shift $$ from fuel to solution pricing. Cut Fuel pricing aggressively, even anticipating future cost reductions. Consider solution pricing separately and from a value perspective.
2 likes • Oct '24
This is changing super rapidly. There are companies like Predibase who can make on prem implementation much more efficient and a lot of upheaval in the major players so Agentic soltions and system designs are being set up to be able to swap from across different LLMs. The biggest factor I don't see being considered among these new tools is RISK -- there are a lot of unknown or poorly understood ways these tools can be missed and hacked. Theres a great book by Richard Heimann and Clayton Pummil called "More than you asked for" which goes over lots of emerging technical and legal topics -- training data memorization/leakage if PII, Copyright infringement, and especially with this new Caludr product that can control and install exec files into your computer traditional hacking.
1-10 of 19
Christine Carragee
3
38points to level up
@christine-carragee-7172
Most of my pricing work has been focused on manufacturing and distribution, but SaaS is an important part of their offerings these days offering.

Active 14h ago
Joined Aug 25, 2024
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