Podcast · 72 min

Pricing your AI product: Lessons from 400+ companies and 50 unicorns | Madhavan Ramanujam

Madhavan Ramanujam, with Lenny Rachitsky · Lenny's Podcast Free Advanced

Pricing your AI product: Lessons from 400+ companies and 50 unicorns | Madhavan Ramanujam

The pricing advisor with the widest view of AI deals on how to charge when every use has a real cost: hybrid models, floors, and pricing the outcome without giving away margin. Directly addresses the gross margin trap.

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The question it answers

  1. My AI features cost real money every time someone uses them. How do I stop gross margin from collapsing?

Read with it

  1. The margin defence most companies are actually reaching for. Poyar's number is the one to remember: roughly 70 to 80 percent of... Growth Unhinged Newsletter · 14 min read Why everyone's switching to AI credits Kyle Poyar
  2. Gives you the current benchmarks to set expectations with your board (roughly 45 to 53 percent depending on how much of the... Jeff Brokaw Article · 12 min read AI Gross Margins: Why the 90% SaaS Benchmark Is Gone Jeff Brokaw
  3. One metric you can start tracking this month: AI product revenue divided by inference cost. It moves before your gross margin... The SaaS CFO Article · 8 min read How to Calculate the Inference Efficiency Ratio Ben Murray
  4. Names the version of this problem that is specific to Indian companies: revenue in rupees, inference billed in dollars, and a... Inc42 Article · 8 min read India's AI Inference Problem Team Inc42
  5. Kiran Darisi (Atomicwork) and Sreedhar Peddineni (GTMBuddy), both out of the Freshworks lineage, on why per seat pricing stops... The Neon Show Podcast · 80 min listen If Big AI Goes Everywhere, What's Left for B2B SaaS? 25 Years, 4 Startups, 3 Eras of SaaS Siddhartha Ahluwalia
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