Pricing in the Real World: Babies, Bots, and Billing

Dec 24, 2025

Dive into the fascinating world of pricing dynamics! Explore how Salesforce evolved its AI pricing models and the intriguing trade-offs between subscription formats. Discover how multi-year contracts can lead to significant savings and when they actually benefit buyers. The hosts draw parallels from everyday experiences, like daycare costs and grocery pricing strategies, to illustrate complex concepts. Plus, a look at the impact of AI acquisitions on the market and the psychology behind consumer perception. Pricing isn’t just numbers; it’s a captivating dance of incentives and perceptions!

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ANECDOTE

Daycare Starts Before Birth

CJ describes registering his kids for daycare before birth and paying ~$3,000/month initially that declines as ratios change.
He explains supply constraints post-COVID made early enrollment necessary and pricey in metro areas.

INSIGHT

Salesforce's AI Pricing Evolution

Salesforce moved AI pricing from per-conversation to flex credits to flat-rate enterprise licenses (AELA).
The AELA simplifies buying but shifts usage risk onto Salesforce and can disincentivize product optimization.

ADVICE

Choose Predictable AI Costs

As a buyer, prefer flat-rate AI pricing when budgeting uncertainty exists to cap spend.
Accept paying a premium for predictability rather than wrestling with variable consumption models.

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