Reforge · Product & Work
TIER 4 Thu, 11 Sep 2025 17:30:17 +0000
AI is changing pricing, but there's no one-size-fits-all approach.͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ | | | --- | | **FRESH INSIGHT **BRIAN BALFOUR --- **AI has changed pricing. Here's how to actually make money.** --- AI has changed pricing, and most companies are still figuring out the perfect overlap of perceived value, cost of revenue, and how monetization enables (or disables) your growth loops. Yes, customer demand is high, but that doesn't automatically translate into high gross margins. There are a few AI pricing myths floating around that look and feel right, but are dead wrong. Should you default to outcome-based pricing? Or wait until falling LLM costs fix your unit economics? In this post, we examine those myths and offer some pricing advice based on proven monetization principles. --- Read more --- | | **FRESH INSIGHT **BRIAN BALFOUR --- **AI has changed pricing. Here's how to actually make money.** --- AI has changed pricing, and most companies are still figuring out the perfect overlap of perceived value, cost of revenue, and how monetization enables (or disables) your growth loops. Yes, customer demand is high, but that doesn't automatically translate into high gross margins. There are a few AI pricing myths floating around that look and feel right, but are dead wrong. Should you default to outcome-based pricing? Or wait until falling LLM costs fix your unit economics? In this post, we examine those myths and offer some pricing advice based on proven monetization principles. --- Read more --- | | Traditional SaaS pricing relied on a fundamental economic principle: build software once, then serve it to customers at essentially zero marginal cost. This predictable cost structure enabled the "unlimited usage" promises that defined SaaS pricing for two decades. --- | | --- AI breaks this. A simple chatbot response might cost fractions of a penny, while a complex document analysis could cost several dollars. Same customer, same feature, wildly different costs. Customer expectations are changing as fast as the technology and variable LLM costs are eating into "gym membership" pricing. These changes can also break existing growth loops. Now is the perfect time to revisit your pricing. --- | | In this post, we'll walk through some of the myths around AI pricing and share an evergreen monetization framework to help you assess your current pricing. --- Read more --- | | Do you know someone who might find this insight useful? Forward this email to them! Did someone forward this email to you? Sign up for future insight drops here --- | | --- | --- | | | | | ---|---|--- Copyright © 2025 ReforgeUnsubscribe from blog emails | Unsubscribe from all emails Privacy Policy | Terms of Service ---