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The Keys To AI Pricing

Why software companies are getting AI pricing wrong and leaving money on the table.

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An Introduction

In a three-part mini series, Camino Search Marketing Director Rob Andrews speaks to Moti Shahani, a Managing Director of Blue Ridge Partners, about what C-level software execs should be considering with their pricing structures in a new era for software.

"AI functionality is now live in most B2B SaaS products, but P&L impact is lagging..."

 

 

 

In Blue Ridge Partners' recent survey of 128 software CEOs, CFOs, CPOs, and CMOs, nearly a quarter of companies still bundle AI at no charge, only 27% have formal, enforced margin guardrails, and just 8% used willingness-to-pay research as the primary basis for setting AI prices. The product decision was made with urgency. The pricing decision was made without sufficient rigour.

Key Research Findings

The Research: A Video Introduction

Rob Andrews, Marketing Director of Camino Search and Moti Shahani, a Managing Director of Blue Ridge Partners, break down the findings of the research and explore the key focus points for AI pricing that C-level leaders should be considering for commercial impact and value creation from their go-to-market strategies.

 

 

The State Of AI Pricing

In the first of a three-part mini-series, Rob and Moti discuss some of the most common mistakes companies are making with their AI/SaaS pricing, how AI has affected and evolved the costing and economic structures of software vendors and why many companies are still bundling AI at no extra charge.

Effective AI Pricing

In this second episode Moti explains why companies should communicate and quantify the effectiveness of their AI software in terms of ROI for their customers, how vendors should approach packaging the features of their software and what criteria should influence pricing for AI-enabled products.

Execution, P&L Capture and Value Creation

In the final episode, Moti touches on the importance of product telemetry with AI pricing, how to drive value creation at the point of product renewal and laying out the investment narrative for the board.

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The Five Keys To AI Pricing

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The Five Keys To AI Pricing