Launching an AI product without bleeding margin to LLM costs.

Problem

A mid-sized software company launching a new AI product. Heavy LLM costs at scale. The team's instinct was cost-plus pricing, anchored on infrastructure, not customer value.

Method

Qualitative research plus a quantitative WTP study. Elasticity by segment. Identified the segments that saw the AI as must-have vs nice-to-have.

Solution

New bundles featuring the AI product. Repriced around customer value, not cost. Equipped the deal-desk team with ROI collateral to defend the new prices.

Impact

One month post-launch: +20% conversion post-trial. Usage stayed in line with forecasts. No margin spiral. The repriced bundles became the primary expansion lever for four quarters.