Company
Date Published
Author
Kavyapriya Sethu
Word count
1231
Language
English
Hacker News points
None

Summary

The choice between usage-based pricing and subscription pricing depends on understanding customer needs and operational flexibility. Usage-based pricing allows businesses to grow with customers, charging them for the value they derive, but may complicate budgeting and revenue forecasts. Subscriptions offer a win-win by locking in customers and smoothing out revenue streams, though they may not suit every customer's consumption habits. The best pricing model is one that supports business strategy, encourages usage, and satisfies customers.