Get Paid with Manny Medina
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The Pricing Shift That’s Breaking SaaS | Get Paid with Manny Medina
Episode Description
As companies introduce credit systems tied to compute and AI functionality, customers push back, questioning why they should pay more for what feels like an extension of existing products.
In this episode of the Get Paid podcast, host Manny Medina and Rob Litterst from PricingSaaS speak to real operators in the field to unpack one of the toughest challenges in modern SaaS: transitioning from seat-based pricing to AI-driven, usage-based models.
They dive into the psychology behind pricing resistance, the risks of poor transparency, and a practical two-step strategy to introduce credits without breaking trust or losing revenue.
The Pricing Shift That’s Breaking SaaS
SaaS pricing used to be simple: charge per seat, scale with users, grow predictably.That model is breaking.As AI features become embedded into products, companies are being forced into a new reality: usage-based pricing tied to compute, tokens, or credits. And customers are not happy about it.“We're already giving you hundreds of thousands to use the software as it is. Why should we pay more for this?”That question sits at the center of the transition. And most companies don’t have a good answer.
Why Customers Push Back
From the customer’s perspective, the frustration is rational.They were sold a product. They’re already paying a significant amount. Now, suddenly, core functionality is being repackaged as an add-on.However, the resistance goes deeper than just price.There are three hidden concerns:
The Real Issue: Change Management
Most companies approach this transition as a pricing update.That’s the mistake.This is fundamentally a change management problem. You’re not just changing how you charge; you’re changing how customers understand value.“The main one is the change management at the point of the customer.”Customers need time to:
The Two-Step Transition Strategy
Instead of forcing customers into a new model overnight, the smarter approach is gradual.Step 1: Introduce Credits Without Charging for ThemBundle a set number of credits into the existing plan.Position it as:
Why Transparency Is Non-Negotiable
One of the biggest failures in usage-based pricing is opacity.Customers don’t understand:
The companies that win will:
The challenge isn’t, “How do we charge more?”It’s, “How do we help customers understand why this is worth more?”Because in the end, pricing is about perceived value, trust, and timing.And if you get those right, the transition doesn’t feel like a price increase.It feels like an upgrade.
Companies Mentioned
In this episode of the Get Paid podcast, host Manny Medina and Rob Litterst from PricingSaaS speak to real operators in the field to unpack one of the toughest challenges in modern SaaS: transitioning from seat-based pricing to AI-driven, usage-based models.
They dive into the psychology behind pricing resistance, the risks of poor transparency, and a practical two-step strategy to introduce credits without breaking trust or losing revenue.
The Pricing Shift That’s Breaking SaaS
SaaS pricing used to be simple: charge per seat, scale with users, grow predictably.That model is breaking.As AI features become embedded into products, companies are being forced into a new reality: usage-based pricing tied to compute, tokens, or credits. And customers are not happy about it.“We're already giving you hundreds of thousands to use the software as it is. Why should we pay more for this?”That question sits at the center of the transition. And most companies don’t have a good answer.
Why Customers Push Back
From the customer’s perspective, the frustration is rational.They were sold a product. They’re already paying a significant amount. Now, suddenly, core functionality is being repackaged as an add-on.However, the resistance goes deeper than just price.There are three hidden concerns:
- Loss of predictability: Usage-based pricing is harder to forecast.
- Lack of transparency: Unclear what credits actually deliver.
- Perceived double-charging: Paying again for something that feels included.
The Real Issue: Change Management
Most companies approach this transition as a pricing update.That’s the mistake.This is fundamentally a change management problem. You’re not just changing how you charge; you’re changing how customers understand value.“The main one is the change management at the point of the customer.”Customers need time to:
- Understand the new model.
- Experience the value.
- Reframe what they’re paying for.
The Two-Step Transition Strategy
Instead of forcing customers into a new model overnight, the smarter approach is gradual.Step 1: Introduce Credits Without Charging for ThemBundle a set number of credits into the existing plan.Position it as:
- A reward for loyalty
- Early access to innovation
- A way to experience new value
Why Transparency Is Non-Negotiable
One of the biggest failures in usage-based pricing is opacity.Customers don’t understand:
- What a credit actually does.
- How usage translates into value.
- Why costs vary.
The companies that win will:
- Clearly map credits to outcomes.
- Show real-time usage.
- Tie pricing directly to value delivered.
The challenge isn’t, “How do we charge more?”It’s, “How do we help customers understand why this is worth more?”Because in the end, pricing is about perceived value, trust, and timing.And if you get those right, the transition doesn’t feel like a price increase.It feels like an upgrade.
Companies Mentioned
- OpenAI
- Anthropic
- GitHub
- Monday.com
- ServiceNow
- Amazon Web Services
- Snowflake
- Twilio
- SendGrid
- Stripe
- Datadog
- Vercel
- Replit