Pricing Models Explained
How you charge changes who buys, how they use the product, and what you have to build. It's a product decision, not a spreadsheet decision.
Beginner8 min readDaksh BathlaDEFINITIONBusiness
Value Metric
The thing you count when charging. A good one rises as the customer gets more value out of the product.
EXAMPLE
Itineraries created per month is a good value metric — it grows with the customer's business. Storage used is a poor one; it's unrelated to what they get out of it.
WHY IT MATTERS
It's the most consequential pricing decision. Pick one unrelated to value and your pricing feels arbitrary, customers resent the bill, and revenue stops tracking your customers' success.