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.