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)
But presumably consumers aren’t where the majority of the spend will be.
Consumers don’t generally get usage-based pricing because of the inconvenience and unpredictability, but B2B SaaS products utilize usage-based pricing all the time.
I've always been curious about who works on software pricing. Do you guys hire actuaries for this type of work?
Isn't it because they have customers who will use as many tokens as they can? With a flat rate, they will run Gas Town continuously while paying as much as the occasional user.