Sandhya explains when to bundle AI features into your core product versus selling them separately. If 60-70% of users want the feature, make it core and raise your base price. If only 20% care, keep it as an add-on. Notion charges extra for AI; Intercom built it in.
So if you look at whether you should choose like an add on package or include it in the core package, it's just a question of adoption. The majority of your existing user base wants the AI feature, is adopting the AI feature, you include it in your core package. It's like if over 60, 70% of your existing users want your AI features, you just make it a part of your core packaging and, and hopefully they find it valuable. So you can actually increase the price of the core package. Right? Um, however, if only 20% of your users are interested in your new AI launch, you make it an add on. You know, this is for example, this is a table from Lenny's newsletter. I have a link for it in the text below. You should check that out. But yeah, essentially you can see this example where you know, notion has just made it a little add on and I think that says something about the level of adoption versus someone like Intercom who's made it a part of the core package. So I would essentially wrap up at this point. Important things to remember are as follows, which is pricing, Packaging is full company strategy. Don't think about it as asp. We need to figure out how to what price point to sell it at. Think about it as like, how do we price and package to make this the biggest, best possible company? Most people are using hybrid, so don't shy away from it and you know, think about what your customers want predictability around. Do they need predictable cost, do they need predictable success? And you know, last but not the least, like make sure that it's aligned to your product workflows and you know, what your customers want to buy and use together. So I don't think we have, we are doing Q and A. So I will wrap up here but I'm sandhyanusual VC Sandhya on Twitter, happy to chat more about pricing and packaging in AI.
