
Price AI Like an Insurance Company
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:

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.

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

You can listen to the full audio version of this blog we call — Buyer Insight. If you spend enough time talking about pricing AI, someone

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

You can listen to the full audio version of this blog we call — Blogcast. AI buyers change pricing more than any shift we have seen

You can listen to the full audio version of this blog we call — Blogcast. AI vendors love to talk about data, but most of that