Detecting Commoditization and Competitive Threats

In this episode of Run the Numbers, CJ sits down with Michael Stanisz, Partner at Revenue Management Labs, the person companies call when their pricing model stops making sense. For decades, software pricing was predictable: sell more seats, add more margin. But with AI, every usage prompt has a real cost, and the old economics no longer hold. CJ and Michael dive into what happens when your product looks like software but behaves like infrastructure, how pricing power erodes as features become free, and why value-based pricing might not be as customer-friendly as it sounds. They also explore the chaos of real-world pricing: from Microsoft cloning your startup to measuring ROI when your product’s impact is undeniable but hard to prove; all wrapped in sharp insights and a few “we still run this on DOS” war stories.

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LINKS:

Michael on LinkedIn: https://www.linkedin.com/in/michael-stanisz-27418a28

Revenue Management Labs: https://revenueml.com/

CJ on X (@cjgustafson222): https://x.com/cjgustafson222

Mostly metrics: https://www.mostlymetrics.com

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RELATED EPISODES:

“Anything new needs to have AI core to its offering”: Amy Butte, How Navan Is Redefining Finance Ops

From Credit Karma to Notion: CFO Rama Katkar on Leading Finance Through Every Growth Stage

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TIMESTAMPS:

(00:00:00) Preview and Intro

(00:02:23) Sponsor – Rillet, Fidelity Private Shares, and Mercury

(00:05:27) The new economics of AI pricing

(00:07:51) When variable costs replace software margins

(00:10:30) The fall of 80% SaaS margins

(00:13:23) From premium feature to table stakes

(00:15:07) Sponsor – RightRev, Tipalti, and Aleph

(00:19:12) Spotting a feature before it becomes a commodity

(00:23:31) The real cost of switching and why stickiness matters

(00:27:46) The rise of AI white labeling

(00:30:03) Outcome-based pricing — altruism or strategy?

(00:34:22) Rewarding throughput and avoiding “tollbooth” pricing

(00:36:29) Measuring usage and why telemetry matters

(00:40:49) What makes a value exchange credible

(00:44:14) Cost avoidance vs. revenue gain

(00:46:02) The stages of pricing maturity

(00:49:49) Why startups see what big companies can’t

(00:52:09) When hype meets hard costs in AI

(00:55:17) When customers refuse to leave on-prem

(01:03:29) Credits and Sign-Off

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SPONSORS:

Rillet is the AI-native ERP modern finance teams are switching to because it’s faster, simpler, and 100% built for how teams operate today. See how fast your team can move. Book a demo at https://www.rillet.com/metrics

Fidelity Private Shares is the all-in-one equity management platform that keeps your cap table clean, your data room organized, and your equity story clear—so you never risk losing a fundraising round over messy records. Schedule a demo at https://www.fidelityprivateshares.com and mention Mostly Metrics to get 20% off.

Mercury is business banking built for builders, giving founders and finance pros a financial stack that actually works together. From sending wires to tracking balances and approving payments, Mercury makes it simple to scale without friction. Join the 200,000+ entrepreneurs who trust Mercury and apply online in minutes at https://www.mercury.com

RightRev automates the revenue recognition process from end to end, gives you real-time insights, and ensures ASC 606 / IFRS 15 compliance—all while closing books faster. For RevRec that auditors actually trust, visit https://www.rightrev.com and schedule a demo.

Tipalti automates the entire payables process—from onboarding suppliers to executing global payouts—helping finance teams save time, eliminate costly errors, and scale confidently across 200+ countries and 120 currencies. More than 5,000 businesses already trust Tipalti to manage payments with built-in security and tax compliance. Visit https://www.tipalti.com/runthenumbers to learn more.

Aleph automates 90% of manual, error-prone busywork, so you can focus on the strategic work you were hired to do. Minimize busywork and maximize impact with the power of a web app, the flexibility of spreadsheets, and the magic of AI. Get a personalised demo at https://www.getaleph.com/run

#RunTheNumbersPodcast #PricingStrategy #SaaSModels #AIPricing #B2BRevenue

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