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PricingSaaS

1k members • Free

5 contributions to PricingSaaS
Where does your product catalog live?
One of the hardest things to sort out in pricing seems to be wrangling the product catalog. Sales need it in CRM/CPQ systems. Finance need it in Billing/ERP systems. Product/Pricing need it in ... where? When products have usage-based pricing or entitlements, many ERPs can't handle it, and the product catalog spreads into a third system that handles usage, credits, entitlements, etc. We see how this crosses organization boundaries, lacking a single clear owner, and keeping everything in sync becomes super important - and very difficult to keep 100% correct over time. And most likely, someone in your organization is using Excel in some part of this process. Curious to hear how others split the product catalog, both horror stories and success stories.
0 likes • 14d
I increasingly see this happening (see attached Wardley map for a visual): - Agents work on tasks/processes that span multiple systems - Each system's UI becomes less important - Providing API access to all systems involved in a task/process becomes more important This is all emerging, but maybe our concept of "System" is very much biased/bounded by human capacity to organize (by department) and use (by system). Whereas a quote-to-cash process - the product catalog "home" often being one of the least well-defined parts of it - by definition spans multiple systems and departments. As agent tasks and processes increasingly will.
0 likes • 6d
Stripe is easy enough to add, there are many options. Depends on how complex pricing you need to support. If you do plain seats/fixed subs, you can probably run it in your accounting software (ERP)? If you do anything usage-based, need to think a bit more carefully.
We aren't talking about AI optics in the buying decision
Salesforge is the only company I have seen do this ⬇️ On their pricing page, they clearly delineate the “human path” and the “AI path” and have pricing packages for each. They charge a premium for the AI agent. $499/m vs. $80/m for their top “human” package. Part of this is a growing trend we see in the data around high WTP (Willingness to Pay) for AI capabilities that solve for specific jobs. But it's not just about the functionality. It's also about the optics. Venture-backed brands looking towards their next series not only want the functionality but they want to tell a story of how they are using agentic software as part of their scalable growth playbook. Enterprise organizations don’t want to be left behind. Pressure from the top is high to deploy more agents to solve different organizational pain points. The teams that best adopt and execute agentic software into the organization's processes are rewarded and given more resourcing. Even if many of the agentic tools require meaningful human oversight today, the idea that the tech can learn and evolve with your team, and ultimately be highly scalable, is an investment many software leaders are eager to make. What do you think? https://www.linkedin.com/posts/caseyhill_salesforge-is-the-only-company-i-have-seen-activity-7432076873213419520-QXfY?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAULZvkBJhmWcLLU-35ban2YYnjvvzf_6Mc
We aren't talking about AI optics in the buying decision
2 likes • Feb 27
I'm a bit curious how AI capabilities in vs on systems will evolve. Last year everyone built an AI assistant and AI capabilities. This year it seems more and more people just connect Claude/ChatGPT and use it as their command cockpit across tons of other systems. The AI capabilities of the systems will still be built-in and valuable ofc, but I think they will increasingly be consumed via APIs and not UIs. Sort of like: API for humans = MCP for LLMs SDK for humans = Skills for LLMs The value of doing it with an external LLM is that it can do something no single system can do no matter how capable, which is cross-correlate across tons of systems and reason about them all as a coherent whole as opposed to just in that single system. Of course they can have integrations with other systems, but it's not the same fluid/dynamic way, as I think anyone who's doing it can attest to. And this kind of shifts the value even more from human to agent users, perhaps?
Outcome-based pricing - how
It's something lots of people talk about but few succeed at. I'd like to argue it's partially because a confusion about where to solve it. The attached Wardley map explain this better visually, but in essence: - Defining "positive outcome" is hard and unless solved the rest is ofc pointless. This is highly contextual. - Correlating the usage events with the outcome events (and/or queries) in time and by identity must be done BEFORE pricing is done. Pricing systems aren't built to do this. - Once the combined event exists, existing usage-based pricing systems can be used without modification. Makes sense? (Edit: Improved wardley map)
Outcome-based pricing - how
1 like • Feb 23
It seems we agree on what the hard part is. At the "how" level it often requires a bit of correlation of several events from different systems over time. Then there's the perception component of it which is the psychology part and super context-dependent. What % of added revenue/saved cost allocations have you found works, or varies wildly? I've seen a few successful 50/50 splits at scale, those were all where one-off implementation cost was low.
Credit based pricing.
Had an interesting conversation this week on credit based pricing and I know this group has the experience, curiosity, and expertise. I’d love your thoughts on this little AI Ramblings blast I put out once in a while. https://www.linkedin.com/posts/akshaypatel07_productmanagement-venturecapital-privateequity-activity-7425524767883169792-SdgG?utm_source=share&utm_medium=member_ios&rcm=ACoAAABJjBEBGcaO8S8AHEITnczM9B_WTSKa6dc
0 likes • Feb 19
Don't you all think that - with current token pricing and the exponentials in AI usage - many systems that are near-real-time for checking usage against thresholds, limits, credits, allowances, commits, entitlements, whatever we want to call them, will start leaking so much revenue that it will become a real pain? Assume an AI gets good enough to actually replace a dev. Assume a wild AI setup with subagents and the full shebang can burn through $5 per minute in token usage doing 10x the work of a very skilled, very expensive employee (so still worth it). Assume it takes 15 minutes to check for overage. In that time window, usage happens that is overage, and worth, in our hypothetical example, $75. Should we: - Bill the overage - customer takes the risk of getting a bill shock - Give the overage away - vendor takes the risk of revenue leakage I'd love to hear others chip in about some napkin math numbers here - what is this gap worth, and is it big enough to merit closing completely? In this example it doesn't look that bad tbh. Or is cutting time from 15 to 5 to 1 minute enough? Exactly this is/was a massive pain in telecom roaming before data packages were introduced, where people paid a lot by MB and then the kids watched YouTube on your phone on the beach for an hour... Those bills were definitely shocking.
1 like • Feb 20
Yeah I know, I can see that future as well and it's coming quite fast but very unevenly distributed. It's just that the underlying system architecture for actual real-time (I can deny an individual usage request) vs near-real-time (I can't but I can react to it shortly thereafter) is quite different. It's not at all easy to graft on to an existing architecture. Different performance characteristics, different latency needs, different uptime / HA needs, different latency vs throughput trade-offs, different storage of balances, etc.
New member
Hi all, I'm a technical product manager for Usage Cloud at DigitalRoute, based in Sweden. Been working with real-time prepaid credits and batch-based pricing, charging and billing since 2004 at scale - also deep knowledge of usage data mediation (the stuff that happens to get the messy real-life operational system events data in shape so it _can_ be priced). I have a fairly solid grasp of the entire quote-to-cash process. I co-host DigitalRoute's invite-only Usage Unlocked roundtable every month or so, where we discuss all things related to usage and pricing. I'm also a Wardley mapping nerd building the collaborative mapping SaaS https://mapaware.io (feel free to try it out), and I co-founded the Blockchain Sweden industry association. And overall tech nerd.
0 likes • Feb 19
@Houston Itzen I've only done a little bit myself, but I hear many people struggling with it. When monetary incentives and accounting regulations collide... :)
2 likes • Feb 19
Yeah, since we're all having fun here innovating in pricing, it's good not to lose track of the mayhem we cause for Finance when inventing new things. This is just one aspect. (Or flip it around, c'mon ASC-606 guys, live a little!)
1-5 of 5
Jonas Wallenius
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45points to level up
@jonas-wallenius-9662
Technical Product Manager Pricing at DigitalRoute. I run https://mapaware.io for strategic Wardley mapping. I co-founded https://blockchainsweden.se.

Active 2d ago
Joined Feb 11, 2026
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