Episode Note: Defending Enterprise Margins with the 3x Value Rule
Generative AI is shifting software economics from virtually zero-marginal-cost distribution to expensive, usage-based compute consumption. Flat-rate SaaS pricing models are quickly becoming financial traps as power users burn through compute, compressing traditional 90% gross margins down into the 20s.
In this episode, we break down:
The 3x Value Rule: Why every AI feature must deliver at least $3.00 in verified customer value (labor savings or risk reduction) for every $1.00 spent on fully loaded compute—or be killed.
Engineering Cost Compression: How to defeat token bloat and agentic loops using dynamic model routing(saving up to 80%) and semantic caching.
The Shift to Outcome-Based Pricing: Why the per-seat license is dying and why enterprise SaaS must pivot to charging per completed unit of work.
📌 Read the full essay & framework: The Autonomous Enterprise on Substack
