
Why Your Customers Buy
Ask most executives why their customers buy from them, and you will get an answer about the product. Better quality. Faster delivery. Easier to use.

Ask most executives why their customers buy from them, and you will get an answer about the product. Better quality. Faster delivery. Easier to use.

Going from 95% contribution margin to 75% sounds like a minor adjustment. It is not. Work through the math, and you will see why chasing

CFOs hate losing money on a customer. When the usage report shows an account costing more in compute than it pays, the reaction comes fast:

In hardware, your biggest customer is your best customer. A fleet manager who buys 200 trucks generates 200 times the margin of someone who buys

A few years ago, companies started applying AI to their products and immediately running into pricing problems they couldn’t explain. Per-seat pricing stopped making sense.

Grammarly doesn’t know if it works. It knows its features work (and so do I; that’s why I use it), and both of us believe

Steven Forth published a this week on his Substack, Pricing Innovation, titled With Generative AI, Why Have a Pricing Model at All? The central question

Part 1 covered the cost problem. AI products have real marginal costs, but most companies price them with pure SaaS instincts built for a world

SaaS companies could afford to be wrong about value. With near-zero marginal costs, even a badly chosen pricing metric left the business profitable. You left

Daniel Cho challenged an example I’d been using in a LinkedIn conversation. The more I tried to defend my original thinking, the less convinced I