Pricing and Packaging AI Products

What's inside

1. Level 1: Why AI Changes Pricing: The Law-Firm CaseFree
   Set up the running case, an AI assistant for small law firms, and its spreadsheet model, then see how a real cost per task, falling model prices and value per outcome make AI pricing different from traditional SaaS pricing.
2. Level 2: Finding the Value MetricFree
   Learn to pick the unit you charge for so that price rises with the value customers get and with your cost to serve.
3. Level 3: Seat Pricing and Why AI Erodes It
   See how per-seat pricing works and why AI breaks it: one seat can do the work of several people, and heavy users can cost more to serve than they pay.
4. Level 4: Usage and Credit Pricing
   Compare pure usage pricing with prepaid credit systems, including how to set credit conversion rates for tasks with different costs.
5. Level 5: Preventing Bill Shock
   Design caps, alerts, budgets and overage rules so usage-based bills stay predictable for customers who need to budget.
6. Level 6: Outcome Pricing and Measuring Outcomes
   Learn when success-based pricing works, how to define a billable outcome, and how to measure and audit it so neither side disputes the bill.
7. Level 7: Designing a Hybrid Pricing Model
   Combine a platform fee, seats, included usage and outcome or overage charges into one coherent hybrid model.
8. Level 8: Cost per Task and Gross Margin by Plan
   Calculate fully loaded cost per task and gross margin for each plan, including inference, retrieval, hosting and support costs.
9. Level 9: Protecting Margin: Routing and Caching
   Use model routing, caching, prompt optimisation and usage limits to cut cost per task without hurting quality.
10. Level 10: Packaging Tiers
    Design good-better-best tiers that separate customer segments by needs, not by arbitrary feature gating.
11. Level 11: Add-Ons and Fair-Use Limits
    Decide which capabilities become paid add-ons, and write fair-use limits that protect margin without punishing normal users.
12. Level 12: Free Plans, Trials and Reverse Trials
    Compare free plans, time-limited trials and reverse trials when every free task costs money.
13. Level 13: Willingness-to-Pay Research
    Test price points with Van Westendorp surveys and structured customer conversations, and read the results carefully.
14. Level 14: Enterprise Pricing, Pilots and Procurement
    Structure enterprise deals, paid pilots with success criteria, and the procurement steps larger legal buyers require.
15. Level 15: Discounting Discipline
    Set discounting rules, including approval levels, give-gets and floor prices, so discounts do not erode margin or price integrity.
16. Level 16: Changing Prices and Grandfathering
    Plan price increases, decreases and structural changes, with a fair grandfathering and migration policy for existing customers.
17. Level 17: Communicating Price Clearly and Honestly
    Present pricing on the pricing page, in quotes and in change notices so customers understand what they will pay and why.
18. Level 18: Public AI Pricing Examples and Review Checklist
    Study dated public pricing examples from AI companies as illustrations, not templates, and apply a structured pricing review checklist.
19. Level 19: Final Challenge: Reprice the Law-Firm Assistant Exam
    Bring the whole course together by repricing the law-firm assistant from start to finish and defending each decision with the spreadsheet model.

Access

The first 2 levels are free with a free account. Every level, the podcast edition and the AI tutor come with All Access at £4.99/month or any Creator plan — see pricing.

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