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PricingSaaS

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Making usage based pricing predictable
What are people's thoughts on building predictability into usage based pricing? Example: Price based on N-month rolling average, resets every N months. N could be 3, 6, 12 but the point is to eliminate variability in pricing month to month. For context, this is mainly from the perspective of small businesses where as software customers they're not even used to paying subscription so it's a huge mindset leap to be charged usage that varies on top of subscription payments. In this case usage based pricing helps to capture different value for different size offices and is directly correlated to the amount of revenue generated. But I'm also interested to know what else is being done in the wild outside of the small business scenario. There may be a great read on this that I've simply missed so feel free to point me in that direction if you're aware.
1 like • 13h
That is one way to make pricing predictable. And it is a good start. The rolling average still leads to a price change each month though, which is what one is trying to avoid. I would not reset the price every month, I would reset it every N months with N being the number used to calculate the moving average. There are some fancier things you can do too. Use AI to build a prediction model for future use. We have found this works quite well. In the past it needed more data than small companies had but this can now be solved with synthetic data.
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Steven Forth
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@steven-forth-5561
Steven Forth is passionate the intersection of innovation, value and pricing. He advises agentic AI and SaaS companies on pricing strategy and design.

Active 13h ago
Joined Jan 9, 2026
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