The Startup Ideas Podcast
The best businesses are built at the intersection of emerging technology, community, and real human needs.
Outcome-Based Pricing Model
Clients pay for results and outcomes, not for the specific method or tools used to achieve those outcomes
Decision Rule
When adding AI to replace manual work, keep pricing the same because the client's outcome hasn't changed - only your internal process has improved
How It Works
Clients budget based on the value they receive, not your costs. If you can deliver the same outcome more efficiently, that efficiency gain is your profit improvement, not a reason to change client pricing
Failure Modes
Raising prices when you automate (clients won't understand why they should pay more for same result)
Lowering prices thinking automation should be cheaper (gives away your margin improvement)
Competing on methods rather than outcomes (clients don't care about your internal process)
Example Decision
“Your Instagram management service costs you $200/month per client to deliver manually. You build AI that reduces your cost to $40/month per client. Keep charging $500/month because that's what the outcome (Instagram growth) is worth to the client.”