The RevOps Review with Roee Hartuv | Cognism

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132,105 followers

4h

7% of their users were driving 50% of their AI spend. That’s what Roee Hartuv found when he worked with a B2B company that had always been profitable. Heavy users cost far more than everyone else, and the long tail of lighter users balanced it out. On average, the business was healthy. Then they added AI. The same pricing model that had worked for years turned a profitable company into a loss-making one. If your AI features sit inside a flat subscription, it’s worth asking who your 7% are. Roee joined Jeff Ignacio on The RevOps Review to talk about the margin bomb hiding inside AI pricing. Watch the full episode in the comments. #RevOps #SaaSPricing #AI #GTM

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Transcript

And this is where we have a hockey stick, so the most heavy users. Use much more and cost us much more than the maybe the average ordinary users. And you're asked for an example. I've recently completed a project with a company that they had. 7% of their users. Cost with them 50% of the entire AI spent. 7% of the users cost 50% of their entire AI spent. And of course you have the long tail that Payless and on average, but on average they were a profitable happy company. And when they introduced AI, all of a sudden they went to that red and this is the margin bomb that you refer to. So they the way that they implemented AI. Did not allow them to capture or keep their margins and they went from a profitable company to a losing company.

Hintro 3h

Roee Hartuv's finding that 7% of users drove 50% of AI spend is a useful warning for any team pricing AI features. Averages hid the cost concentration until usage grew. Checking the spend distribution per user before setting pricing is simpler than correcting it after.

Roee Hartuv 2h

Thanks for having me on the show

Cognism 4h

Full episode here https://www.youtube.com/watch?v=l1cDhJFD7bc

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