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alexpotatotoday at 12:13 PM3 repliesview on HN

I'm no expert in pricing economics but once peak/off-peak pricing arrives, it seems like tokens are going to be like electricity or long distance phone minutes where it just becomes a commodity/race to the bottom.


Replies

garrickvanburentoday at 12:20 PM

Yes. I focus on pricing software and I’m a bit baffled why frontier models are pushing tokens.

It’s a race to the bottom, and the bottom is unlimited use for a flat monthly rate.

Granular pricing (tokens, minutes, etc) is pretty anti-customer generates less revenue than customer value-based subscriptions (why SaaS is such a good business model)

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chiitoday at 1:00 PM

> becomes a commodity/race to the bottom.

that's a good outcome - it means they're fungible, and easily available.

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