The art and science of SaaS pricing: True usage-based pricing

In part 2 of this series, we explored scalable unit-based pricing and highlighted a few of the common pitfalls and lessons the industry has learned. In this final article, we will delve deeper into the ultimate alignment with customer value: true usage-based pricing.

Irrespective of how advanced you get with the choice of your unit, the pricing fundamentally still boils down to a flat (within the unit limits) subscription fee — unless you go all the way to true usage-based “transaction pricing.” With transaction pricing, you simply defines a rate per unit and then assess and invoice monthly in arrears

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