Bridging the pricing gap

Bridging the pricing gap: how to de-risk your move from SaaS to usage- or outcome-based pricing

Usage- and outcome-based pricing models are becoming the standard for GenAI and SaaS companies. Unlike traditional SaaS, where costs per user are low and revenue is predictable, AI-driven products incur real-time variable costs — each API call or inference has a direct financial impact.

Failing to align pricing with customer value and operational costs leads to misaligned incentives, customer churn, and revenue loss. However, making the shift to usage- or outcome-based pricing is a high-stakes decision — get it wrong, and you risk losing customers or revenue.

GenAI companies, SaaS companies that are building AI products, and SaaS companies that want to overhaul their revenue model are all currently facing this challenge and need to consider several things when making the shift. The solution? Revenue simulation tools, like Orb Simulations, enable you to move beyond trial and error to a data-driven strategy that scales.

GenAI companies

GenAI companies are still figuring out pricing for the first time. With no established industry benchmarks, many rely on gut instinct, which can lead to misaligned pricing, revenue unpredictability, and loss of revenue.

While usage-based pricing — charging per API call, token, or inference — is the most common approach, it’s not always the best fit. Why?

• Usage alone doesn’t reflect value. Some customers get more benefit from AI outputs than others, even if they use the same number of queries.
• Unpredictable costs discourage adoption. Customers hesitate when they can't estimate their monthly spend.
• Revenue can become volatile. If usage drops, so does revenue. This makes it harder to forecast growth.

A more customer-centric alternative is outcome-based pricing, where customers pay based on the actual results they achieve. Instead of charging per query, companies might charge per lead generated, contract reviewed, fraud case detected, or ticket resolved. This model helps companies differentiate themselves in a crowded AI market and ensures customers pay for measurable value rather than raw usage.

However, AI models evolve rapidly, and pricing must adapt. Costs per inference may decline, new competitors may emerge, and customer expectations will shift. GenAI companies need a way to test and refine pricing models on an ongoing basis.

SaaS companies launching an AI product

For SaaS companies integrating AI for the first time, traditional pricing strategies no longer apply. Unlike standard SaaS, where adding users incurs minimal costs, AI-powered products have real-time variable costs per interaction.

SaaS companies often start with per-seat pricing or flat-rate subscriptions, but this doesn’t account for AI’s cost structure:

• Every use has a direct cost. Unlike traditional SaaS, where additional users are nearly cost-free, AI queries require compute power and associated costs.
• High adoption can become a financial liability. Without proper pricing, viral usage could drive up costs without increasing revenue.
• Competitor-based pricing often leads to misalignment. Many SaaS companies benchmark AI pricing against competitors, but in such a new market, there’s no guarantee that competitors have it right.

Instead of making blind assumptions, SaaS companies need real data to optimize pricing decisions. By experimenting with pricing before going live, SaaS companies can avoid costly missteps and confidently roll out a model that scales with customer demand and business growth.

SaaS companies transitioning to usage- or outcome-based pricing

For SaaS companies fully transitioning from subscription-based to usage- or outcome-based pricing, the shift can be daunting. Moving from predictable, recurring revenue to a more dynamic pricing structure introduces operational, financial, and technical complexities.

This transformation affects three critical areas.

1. Revenue predictability: Revenue now fluctuates based on customer usage, making forecasting more complex.
2. Customer expectations: Users accustomed to flat pricing may push back against variable costs.
3. Engineering requirements: Usage-based pricing requires real-time tracking, metering, and billing infrastructure, adding technical overhead.

With such an enormous shift, you won’t get your new pricing model right the first time. You’ll need to refine pricing over time, but experimenting with real customers is risky.

How Orb Simulations helps companies transition with confidence

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Shifting to usage- or outcome-based pricing is a high-stakes decision. A poorly designed model can lead to customer churn, lost revenue, and operational inefficiencies, while the right pricing approach can drive higher retention, better monetization, and long-term growth.

Eliminate the Guesswork — Test Before You Commit

Orb Simulations enables companies to:

• Run multiple pricing models side by side and compare their effectiveness to identify the best one.
• Accurately forecast revenue impact, using historical pricing and usage data, before making live pricing changes.

Make the Shift Without Heavy Engineering Investments

Redesigning pricing usually requires costly and time-consuming engineering work to build real-time billing and metering systems. Orb Simulations removes this bottleneck, allowing companies to refine their pricing strategy through easy-to-use tools. This empowers non-technical users to discover new ways to maximize revenue and drive growth.  

Once companies have optimized and chosen the best pricing model to move forward with, no engineering or infrastructure changes are needed to push the new pricing live.

Maximize Revenue, Minimize Risk, and Drive Long-Term Growth

The right pricing model is about more than monetization — it’s a strategic growth lever that enhances customer adoption, retention, and profitability. With Orb Simulations, companies can:

• Align pricing with customer value.
• Adapt to market and cost structure changes.
• Ensure every pricing decision is backed by real data.

Ready to Take the Next Step?

Sign up for the Orb Simulations waitlist today and start building a pricing strategy that works for your business.