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garrickvanburentoday at 12:20 PM3 repliesview on HN

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)


Replies

progvaltoday at 1:54 PM

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.

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Grombobuloustoday at 12:24 PM

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.

dakollitoday at 1:48 PM

I've always been curious about who works on software pricing. Do you guys hire actuaries for this type of work?

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