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indymike 2 days ago

I'm going through this with pricing for our product and the battle is:

Customer: wants predictable spend Sales/Marketing: wants an amazing product that is easy to sell (read does the mostest for the leastest) Advisors: want to see the SaaS model in all it's glory (i.e. 85% margin primarily from oversubscription of infrastructure) Finance: wants to make money and is really worried about variable costs ruining SaaS profit margin

A couple of thoughts:

1. AI-based cost is mostly variable. Also, things like messaging, phone minutes and so on are variable. Cloud expenses are also variable... There's a theme and it's different.

2. The unit of value most ai software is delivering is work that is being done by people or should be being done and is not.

3. Seems like it's time to make friends with a way to make money other than subscription pricing.