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"User-based pricing is a thing of the past." How Databricks found out the hard way: "When we started selling Databricks, we were doing $15k, $18k deals annual deals. New rule became: no deals less than my monthly Uber bill. We were adding tons of value. But because we're usage-based,...

58,595 views โ€ข 6 days ago โ€ขvia X (Twitter)

12 Comments

Jester's profile picture
Jester6 days ago

my monthly uber bill as the new minimum deal size is a business philosophy i respect deeply

TwinsMom's profile picture
TwinsMom6 days ago

Pricing should track value, not seats. You and @mozlyxy are my go-to finance accounts for takes like this.

AJ Wolf's profile picture
AJ Wolf6 days ago

Starting off with $15k ACVโ€™s turned into $200B company ๐Ÿ‘€

Turner Novak ๐ŸŒ๐Ÿงข's profile picture
Turner Novak ๐ŸŒ๐Ÿงข6 days ago

๐Ÿ˜‚ ๐Ÿ‘€

Reed Porter's profile picture
Reed Porter5 days ago

All this talk and he never told us the value metric they price on lol. What a waste.

Sridhar A's profile picture
Sridhar A5 days ago

the agentic shift makes this even more interesting. charging per user can limit adoption exactly when the product gets more valuable as more agents and people use it.

Maya's profile picture
Maya5 days ago

Yes! Louder for the people in the back.

Nico K's profile picture
Nico K6 days ago

Pricing by value beats per user every time

Sebastian Caniulao | Ecommerce Email & Growth's profile picture
Sebastian Caniulao | Ecommerce Email & Growth6 days ago

The bit about per seat pricing making customers restrict who logs in is the same trap as charging for email sends. The moment a client is paying per contact they start pruning the list to save money, and the people they prune are the dormant ones who were actually the cheapest to win back. The billing model quietly decides the strategy.

Wojtek Szremski's profile picture
Wojtek Szremski6 days ago

Price = value means 0% ROI for the buyer. Why would anyone buy?

JaฦดCรธฤ‘es ๐Ÿ”Š's profile picture
JaฦดCรธฤ‘es ๐Ÿ”Š6 days ago

What about Consumer Surplus, you don't need to extract every but on value with your pricing. Give users something to be happy about

Tommy Mc's profile picture
Tommy Mc5 days ago

seat pricing misprices ai products and suppresses the behavior that creates the value. charging for the work done is the cleaner loop

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