Usage-Based Pricing: What Hardware Manufacturers Can Learn from Software

Usage-based pricing, as the name suggests, is a consumption-based pricing model in which customers are charged only when they use a product or service, aligning the value customers receive with the price they pay. Over the last several years, a growing number of software companies have transitioned to usage-based pricing models, many of whom now outperform the general SaaS public indices. Hardware manufacturers interested in transitioning to usage-based pricing can learn several lessons from their software counterparts.

You will learn:
✅ Why usage-based pricing should matter to hardware OEMs
✅ The data and technology “basics” needed to get started
✅ Understanding different categories of pricing metrics
✅ How to determine value attribution and address operational challenges
✅ When usage-based pricing makes sense vs. when to avoid it

Xyte Team
April 2, 2024


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