This Week: August 10 - 17
The Hot Topic 
Convertible two-part tariffs
This week’s top discussion is all about a new twist for pricing developer tools:
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Convert unused months of an annual plan into usage credits
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Give users flexibility to “burn down” future periods for extra capacity today
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Reduce friction compared to credit top-ups
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Potential upside: higher retention, stronger satisfaction, and revenue pull-forward
LinkedIn Crossover 
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From Rob: The two types of buyer personas
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From Kyle Poyar: Explainer videos on pricing pages
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From Ulrik: “A $10M ARR startup is likely just five $2M ARR businesses stacked on top of each other”.
Upcoming Events 
Agentic AI Pricing 1 of 6 [Webinar] | Making Money In Uncertain Times
Resident expert @Ulrik will be covering:
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Market: Shifting costs, capabilities & competition + commoditization
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Business: Win market share fast with untested products of unknown value
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Product: Horizontal vs. vertical - niche down or chase TAM?
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Pricing: Charge for unknown value, share volatile costs, balance agility vs. stability
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Strategy: AI pricing framework for uncertain times
Wednesday, August 28, 2025:three_o_clock: 6:00 AM PDT | 9:00 AM EDT | 3:00 PM CEST
From the Good-Better-Best Newsletter 
What to do when your value metric becomes obsolete
When a core value metric becomes obsolete, it can be a make-or-break moment for SaaS companies.
For Octopus Deploy, a DevOps automation platform, the shift to cloud, containers, and serverless rendered their original per-server pricing irrelevant.
But this isn’t just a DevOps story.
It’s a preview of what’s coming for much of SaaS. In the next few years, the rise of AI will push companies toward agentic solutions and outcome-based pricing. That shift will make many of today’s most common value metrics (e.g., seats, storage, transactions) feel as outdated as “per server” does today.
The challenge will be the same one Octopus faced: identify a new metric that reflects value, is easy for customers to understand, and doesn’t create friction in adoption.
Octopus’ journey from servers to projects shows what it takes to make that leap. It’s a story of aligning price with value, preserving simplicity for self-service growth, and managing the inevitable turbulence of migrating thousands of existing customers.
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