How to price your AI product

Outcome as a service is cool, but how do you define outcome? ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more NextBigWhat is on a mission to enable you to make you micro-smarter every day - across a range of topics (AI to mental health, psychology to economics). If you like what you are reading, tap on ❤️ --------------------------------------------------------------- [How to price your AI product]( Outcome as a service is cool, but how do you define outcome? Sep 11   [READ IN APP](   In the rapidly evolving world of AI, startups face a unique challenge when it comes to pricing their products. Traditional pricing models often fall short in capturing the true value of AI solutions, especially for outcome-as-a-service (OaaS) products - and on the other hand, you don't want to invent new ways of pricing and in the process, confuse the customers. prompt: AI gangster leaving money on the table :) A look at AI startups website and you won't find any pricing details (they all ask to 'get into a demo') as I believe most of them are still iterating on pricing. [Upgrade to paid]( What exactly is Outcome-as-a-Service (OaaS) Before diving into pricing strategies, it's crucial to understand what OaaS means in the context of AI products. OaaS is a business model where customers pay based on the outcomes or results delivered by the AI solution, rather than for the technology itself or the time spent using it. --------------------------------------------------------------- Key factors to consider in AI product pricing - Value Delivered: The most critical factor in pricing an AI product is the value it delivers to customers. This is especially true for OaaS models, where the focus is on outcomes. - Cost Structure: Understanding your costs, including development, infrastructure, and ongoing maintenance, is essential for setting a price that ensures profitability. - Market Dynamics: Research your competitors and understand the market's willingness to pay for similar solutions. - Scalability: Consider how your pricing model will scale as your customer base grows and your product evolves. - Customer Segment: Different customer segments may derive different levels of value from your product, which could influence your pricing strategy. Pricing Strategies for AI Startups offering Outcome as a service model 1. Value-Based Pricing This strategy aligns well with the OaaS model. Price your product based on the quantifiable value it delivers to customers. For example, if your AI solution increases a customer's revenue by $100,000 per year, you might price it at a percentage of that increased revenue... Keep reading with a 7-day free trial Subscribe to NextBigWhat: Startups, AI and You to keep reading this post and get 7 days of free access to the full post archives. [Start trial]( A subscription gets you: 😎 Every issue of the site content and the newsletter ✅ Minimum 4 premium-only issue every week! 🎯 Access to latest book summaries (not even available on Blinkist!)   [Like]( [Comment]( [Restack](   © 2024 Zakti Inc 677, HSR Layout, Bangalore-560102 [Unsubscribe]() [Get the app]( writing]()