Scary Margin Math
November 2, 2026
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
Tag: AI economics
Price AI Like an Insurance Company
October 26, 2026
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:
Your Best Customers Are Costing You Money
October 19, 2026
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
Pricing AI Is Hard, Part 2: The Value Problem
September 21, 2026
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
The Case for Token-Based Pricing
June 15, 2026
You can listen to the full audio version of this blog we call — Buyer Insight. I’ve spent decades arguing against cost-plus pricing, and token-based pricing
Free AI Is a Strategy, Not a Pricing Model
January 26, 2026
You can listen to the full audio version of this blog we call — Buyer Insight. Right now, a surprising number of companies are offering AI
