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Business · Advanced
Unit Economics: SaaS Pricing
ARR & MRR Models
How to structure subscription pricing when your 'Cost of Goods Sold' (Tokens) is variable. Avoiding the 'Wrapper Tax' trap.
01
The AI Margin Problem
Traditional software has ~90% gross margins. AI software has 40-60% because every user interaction costs money (tokens). If you price incorrectly, heavy users will bankrupt you.
| User Type | Subscription | API Cost (COGS) | Profit |
|---|---|---|---|
| Casual User | $20/mo | $2.00 | +$18.00 (Healthy) |
| Power User | $20/mo | $25.00 | -$5.00 (Bankrupt) |
| Attack Vector | $20/mo | $500.00 | -$480.00 (Dead) |
02
Pricing Strategies
Three models to protect your margins.
01
Credit System
Sell '500 Generations'. Guarantees margin. Safe but higher friction.
02
Fair Use Cap
Unlimited* (*up to 100 req/day). The Netflix model. Good UX, managed risk.
03
BYOK
Bring Your Own Key. User pays OpenAI directly. You charge for the UI only. 100% Margin.
03
The 3x Rule
Never price your base tier below 3x your estimated average token cost.
- Estimate Avg Token Usage per Session (e.g., 10k tokens = $0.15).
- Estimate Sessions per Month (e.g., 20 sessions = $3.00 cost).
- Minimum Price = $3.00 x 3 = $9.00/mo.
- Buffer: The extra margin covers stripe fees, hosting, and the occasional power user.