Pricing looks deceptively simple from the outside; inside, it’s anything but. Over the years, I’ve learned that every price tag is really a strategic statement about value, priorities, and the future we’re building toward.
At Fin, pricing and packaging (P&P) is more than a finishing touch. It’s a research problem, a forecasting challenge, a commercial decision, and ultimately, a strategic statement, requiring deep cross-functional work. We must balance the needs and wants of our customers, the value delivered by our product, and the broader vision we are building towards.
Our approach keeps evolving as our product and market mature. I treat it as a living system—continuously informed by research, GTM learning, and customer behavior, never "set and forget."
Here’s how I run the process in practice, especially when we launch something new that needs to be monetized, like Fin, our AI Agent. The work moves from qualitative discovery to quantitative validation to commercial modeling, with tight partnership across product, research, data science, finance, GTM, and engineering.
Step 1: Foundational research
I start by talking to buyers to understand their mental models of value. How do they define ROI? What pricing models do they expect in this category? What feels intuitive, and what feels off? This early discovery shapes two crucial choices: the pricing model and the pricing metric.
The pricing model is the overall structure; value-based, usage-based, access-based, fixed fee, and so on. With Fin, we chose a value-based model: you only pay when Fin delivers value. Our research clearly showed that buyers don’t want to pay for usage, they want to pay for results.
The pricing metric is the unit of value within that model, the unit we anchor pricing to. For Fin, the pricing metric is “outcomes.” An outcome is defined by Fin successfully handling a customer service query.
Small definitional changes can dramatically alter how customers perceive value, so I obsess over details. Buyers rarely hand us the “right” model; they reveal how they evaluate value, and I translate that into a model and metric that align with their goals and expectations.
Throughout, I loop in execs, finance, GTM, and engineering to ensure alignment before proceeding. Pricing choices cut across the business; they can’t be made in isolation.
Step 2: Willingness to pay
Once we have a model and metric, I quantify what the market will bear. This is where rigorous willingness-to-pay (WTP) research comes in, grounded in the language we validated through the qualitative work.
Here’s the kind of framing I use in surveys to keep things concrete and consistent with our model and metric:
You would only pay when Fin delivers an outcome (→ the model). An outcome is counted when the AI Agent resolves a customer query with no further help needed (→ the metric). Would you be willing to pay $X per outcome for Fin?
The foundational qual is so important as a first step. It helps us decide what we should be asking about before we start asking how much people will pay. Without the qual ground work, you risk building a very convincing answer to the wrong question.
The goal isn’t to find a perfect price. That doesn’t exist. The goal is to ground our discussions in the reality of the market.
I use methods like Gabor-Granger and Van Westendorp to understand WTP and to shape a demand curve that informs strategy, not just a single number.
This chart shows us what percentage of the market is willing to buy the product at various price points. The demand curve shows that 69% of buyers were willing to pay for the product at $0.86 per outcome, whereas only 39% were willing to pay at $1.42.
The dashed line shows the price point at which revenue for the business would be maximized (by multiplying adoption by the dollar amount).
This allows us to debate knotty questions like: What’s the right balance between growth and revenue? How sensitive is demand to price changes? At what price do we start losing the market? If we wanted to increase adoption, would lowering our prices by $X make a meaningful difference?
Those conversations help me weigh customer value and business outcomes side by side. At this stage, decisions feel more tangible, but I don’t finalize a price until I’ve modeled the operational realities.
Step 3: Modeling
By now I have a validated model, a clear metric, and a strong WTP signal. Next I translate theory into a commercially workable plan—this is where data science and finance are indispensable.
I start with a list price aligned to our strategy and commercial goals. Then I adjust for likely discounting to estimate realized price. Next, I analyze beta usage to project outcomes per customer by segment and derive average ARR. I combine usage projections with WTP to model attach rates across conservative-to-optimistic scenarios. Finally, I connect the dots in our long-range plan—logos, ARR, margins—iterating until the numbers and narrative cohere.
The modeling step is important because willingness-to-pay data is somewhat theoretical. It reflects intent, not behavior. Modeling helps us bridge that gap.
The goal of this step is to land on a price point recommendation, alongside forecasts for ARR and adoption. It allows us to understand the real business impact of the decisions we’re making.
Alongside all of this, we need to ensure any decision we make falls in line with our pricing principles and broader business objectives.
Step 4: Sign-off and execution
With the analysis complete, I consolidate everything into a clear P&P recommendation for executive approval. Once approved, the real work begins: enabling sales, communicating changes to customers, instrumenting ROI proof points, and monitoring performance so we can learn and iterate.
Do we run the full process every time?
Not always. This is the ideal process, and I apply it end-to-end for the most material decisions. In reality, time and resource constraints require judgment; rigor should mirror impact. When uncertainty crops up midstream, I run scrappier, targeted research rather than forcing a linear path.
The ongoing challenge
As Fin’s breadth has expanded, our pricing system has had to evolve, too. For a while, modular pricing worked well—each product had its own logic tied to a crisp outcome. As we add more products, more Agent capabilities, and more outcomes, the question shifts from “what is the right P&P for this one product?” to “how does everything fit together into a coherent pricing system?”
We must recognize that pricing isn’t something you set once and leave alone. As products evolve, especially in a world where AI is rapidly changing how value is created and delivered, it’s important to regularly step back and review the bigger picture, not just the component parts.
For example, outcome-based pricing has served us well, particularly when our products were tightly tied to clear, measurable outcomes. But as our products become more varied, and as we continue building toward a broader platform, it becomes less straightforward to apply a single model cleanly everywhere.
The challenge becomes less about replacing one model with another, and more about continually looking up and asking: what pricing philosophy best reflects the value we’re delivering today? And how do we deliver that philosophy in a way that still feels right for customers?
In short, there is no finish line, pricing is never “done” – and that’s exactly how it should be.
Why this work matters
Pricing and packaging is often noticeable only when it goes wrong. A confusing model, a bad metric, or a price that feels disconnected from value. And we hear about those quickly.
When pricing is done well, it becomes nearly invisible—but it still does a lot of work. It shapes how people perceive value, clarifies what they’re paying for, and makes the product easier to sell, easier to buy, and easier to scale. Most importantly, it forces us to be honest about what the product is really worth. That’s why I take it so seriously—and why I treat pricing as a product in its own right.
Inspired by this post on The Intercom Blog.
