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Maximizing Revenue with Usage-Based Pricing: Tariff Structures Explained https://business.columbia.edu/press-r... In this video, we dive into the benefits and challenges of usage-based pricing models in the context of generative AI and traditional SaaS products. The unpredictability of these models can impact financial calculations, sales compensations, and customer budgeting. To address these issues, we explore two tariff structures: the two-part tariff and the three-part tariff. We'll discuss how these structures work, their advantages, and real-world data, including a 2013 study showing that three-part tariffs can significantly boost revenue. Additionally, we offer advice on which model might be best suited for established brands versus emerging companies. 00:00 Introduction to Usage-Based Pricing 00:17 Challenges of Unpredictable Pricing 00:26 Need for Predictability in Pricing Models 00:33 Introduction to Tariff Structures 00:39 Two-Part Tariff Structure Explained 00:56 Three-Part Tariff Structure Explained 01:26 Benefits of Three-Part Tariff 01:31 Study on Tariff Structures 01:46 Customer Trust and Tariff Choice 02:00 Recommendations for New Entrants #SaaSRevenue, #UsageBasedPricing, #TariffStructures, #TwoPartTariff, #ThreePartTariff, #PricingStrategy, #RevenueOptimization, #PredictablePricing, #SaaSMonetization, #PricingModels, #SubscriptionPricing, #SaaSGrowth, #SaaSStrategy, #CustomerTrust, #MarketPositioning, #PricingPsychology, #PricingInsights, #FinancialPredictability, #SaaSMarketing, #MobileSubscriberStudy, #PricingResearch, #PricingBestPractices, #SaaSEntrants, #BrandTrust, #SaaSBusiness, #PricingInnovation, #TechStrategy, #RevenueManagement, #EffectivePricing, #PricingChallenges, #PricingRecommendations, #SaaSAnalytics, #CustomerBehavior, #RevenueStrategies, #SaaSAdvice, #SaaSTips, #PricingStructure, #SaaSEconomics, #SaaSTariffs, #PricingEducation