seat pricing or per-task pricing when one account costs me $410 a month in compute Usage-Based
Flat $12 per seat. One account has 8 seats, which is $96/month, and last month they ran 41,000 tasks. My variable cost is about $0.01 a task, so that account cost me $410 and paid me $96.
Meanwhile the median account runs 900 tasks and pays $36 for three seats, which is very comfortable.
So the seat model is subsidising one customer with everyone else. Do I move everyone to per-task, or is there a shape I am missing? Chart of the margin curve attached, the crossover is around 4,800 tasks.
@brinekeeper · 3mo ago · 3 replies
You do not have a pricing model problem, you have one price stretched over two different products. The 900-task account and the 41,000-task account are not buying the same thing.
The shape you want is a platform fee plus an included allowance plus overage. Something like $99/month including 8,000 tasks, then $0.015 per task after. Light accounts pay a floor that covers support and hosting, heavy accounts pay for what they burn, and your margin stops being a lottery ticket on who signs up.
Pure per-task is worse than it looks. Revenue becomes unforecastable, and more importantly customers get afraid of the product. Nobody wants a meter running from unit one, so they use it less, which is the opposite of what you want.
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@p99_hana · 3mo ago
The included allowance is the part everyone skips and it is the part that makes usage pricing survivable. Same invoice most months, and the overage only shows up when they genuinely got more value.
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@epsilon_eddie · 3mo ago
Set the allowance from your actual median, not from what you wish usage looked like. If your p50 is 900 tasks then 8,000 included means basically nobody ever sees an overage line and the whole mechanism is decorative.
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