What happens when AI changes what software can do faster than companies can figure out how to charge for it?
Rob Litterst is co-founder of Pricing SaaS, focused on SaaS pricing and AI monetization, and a former pricing strategist at ProfitWell. His work explores how software companies price, package, and monetize products as AI changes the value they deliver.
In this episode, Rob and Mark Stiving unpack the shift from seat-based subscriptions to credits, usage-based pricing, AI agents, and outcome-based models. They explore why customers may still prefer familiar pricing, when credits make sense, and why pricing should start with buyer segmentation rather than the latest trend.
Why You Have to Check Out Today's Podcast:
- Understand why credits are gaining traction and how they can give vendors cost control while offering buyers flexibility.
- Learn why broad platforms may suit credit models, while focused solutions can be easier to price around specific outcomes.
- Discover why outcome-based pricing is difficult to implement, from agreeing on outcomes to proving attribution and earning buyer acceptance.
- Explore how hybrid seat-and-credit models can introduce AI without disrupting existing customer relationships. See why understanding buyer personas and segmentation is foundational to pricing and packaging.
"The more specific your solution, the more specific the pain points you're solving, the more specific the outcomes that you're generating, the easier it is to price on a consistent outcome and kind of, like, prove that out."
— Rob Litterst
Topics Covered:
01:00 – How Rob Found His Way Into Pricing. From SaaS sales at HubSpot to startups and ProfitWell, Rob explains how pricing and packaging shaped his experience.
04:30 – Value Metrics vs. Pricing Metrics. Mark and Rob debate the terminology and the difference between what customers perceive as value and what a company charges for.
09:30 – Are Credits Just Company Currency? Why credits can help broad platforms support different use cases while keeping subscription costs predictable.
12:00 – Platforms vs. Solutions: When Credits Make Sense. The more specific the problem and outcome, the easier it may be to price a solution directly rather than through credits.
16:00 – Why Hybrid Pricing Is Taking Off. How companies combine seats and credit allowances to introduce AI while preserving familiar customer relationships.
18:30 – Can AI-Native Services Charge for Outcomes? The conversation explores software companies that use AI to deliver a job or service and price around the result.
20:30 – Why Outcome-Based Pricing Is So Hard. Customers and vendors must agree on the outcome, the vendor must deliver it, and the impact must be proven and attributed.
26:00 – The Hidden Profit Advantage of AI. Rob explains how selecting and routing to the right AI model for each task could improve product economics.
28:30 – Why Buyer Segmentation Comes First. Rob shares the ProfitWell sequence: buyer persona, pricing structure, packaging, and then price points.
31:00 – The Pricing Fundamentals That Still Matter. Why knowing the buyer and understanding pricing fundamentals remain essential even as AI changes the market.
Key Takeaways:
"Customers just want to pay for a seat." – Rob Litterst
"Credits can offer flexibility for broad platforms, but buyers may prefer direct pricing when the solution and outcome are clear." – Rob Litterst
"I think a bunch of companies have tried to go to market with outcome-based pricing and found out that their customers just have no interest in it. Like, they don't want it. They just wanna pay for a seat." – Rob Litterst
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