Individual skill

usage-based-pricing-model

Design a usage-based pricing scheme that scales revenue with value without scaring customers away — the metric that tracks value, tiers with included volume, and the guardrails that prevent bill shock. Use when asked to design usage-based or metered pricing, move from seats to consumption, price an API or AI product per unit, or handle customers afraid of variable bills. Produces the value-metric selection, the tier structure with included volumes and overage rates, the bill-shock guardrails, revenue modelling at usage percentiles, and the migration plan from the current model.

skills/usage-based-pricing-model/SKILL.md

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# Usage-Based Pricing Model

Usage pricing done right means revenue grows when the customer's value grows. Done wrong it means a customer opens an invoice ten times last month's, screenshots it, and churns publicly. The difference is rarely the rate — it is whether the metric tracks value the customer recognises, and whether the guardrails make the worst-case bill survivable. This designs both, and models the revenue before you commit.

## What This Skill Produces

- **The value-metric decision** — the unit you charge for, tested against the four criteria that separate a good meter from a resented one
- **The tier structure** — included volumes, overage rates, and the flat platform fee that stabilises revenue
- **Bill-shock guardrails** — caps, alerts, forgiveness policies, and the commit-and-drawdown option for predictability-hungry buyers
- **Revenue modelling** — projected revenue at the P10/P50/P90 of the actual usage distribution, not at the average
- **The degenerate-case check** — who wins and who loses at the extremes of the usage curve, before a customer finds out for you
- **A migration plan** — how existing customers move from the current model without a revolt

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