Wu: AI startups are capping gross margins at 20% via cost-plus pricing
Scott Wu · Tech Executives: AI Has Changed SaaS Forever (Don't Fall Behind) · Jul 18, 2025 · at 33:36
Scott Wu, CEO of billing platform Metronome, explains how early-stage AI startups are structuring low-margin pricing models to prioritize market share.
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“Actually, one of the things that's really fascinating is you'll see companies that are actually, their pricing model is like a cost plus model in this moment, where basically they just fix their margin. And then they basically say, look, we just, we're going to be fixed at 20% margin.”
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