Harmon: OpenAI frequently lowers prices with upgraded models without raising them
Allison Harmon · How to Leverage Pricing and Packaging to Drive Revenue with Miro, Loom, OpenAI, and Splunk · Dec 3, 2024 · at 23:47
Allison Harmon, Head of Growth at OpenAI, details the company's pricing velocity and price-drop strategy during a panel at the SaaStr Annual AI Summit.
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“OpenAI has certainly done that many more times than twice a year. We typically launch a model and then weeks or months later launch another version of it that's even better and lower the price and then lower the price again. I think that really speaks to the speed of the AI market and innovation. And as we pointed out, they're always lowering the price. We are always lowering the price. We've yet to do a price increase.”
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More from Allison Harmon
Harmon: Avoid overhauling packaging or adding SKUs more than every two years
“I feel like you can make tweaks and small or medium changes as frequently as you want and as your business commands, but I wouldn't Change your packaging, add a skew, overthink something more frequently than every one to two years.”
Harmon: Never test a pricing change you are unwilling to roll back
“I feel like there's general growth wisdom, which is don't test something you wouldn't ship. And I think that's really true with pricing and packaging. But the contrapositive or inverse is also true, which is don't test something you wouldn't roll back.”
OpenAI has kept the ChatGPT Plus subscription unchanged for over a year
“ChatGPT Plus has been our ChatGPT subscription for over a year now, and so that's an example of something we haven't changed that I think I'm proud of and we've been thoughtful about where and when We'd change that, but it has stayed the same in the market, wh…”