The margin party's over and the innovation game is just beginning

You can’t just pass your overhead costs onto customers. You have to rethink your model entirely

Sorry to break an uncomfortable truth to SaaS founders: Your fancy new AI features? They're eating your margins for breakfast. And lunch. And dinner.

The math is brutal but simple

In the good old days of traditional SaaS, for every $100 your customer paid, you kept $80. Your costs were predictable - some servers here, a support team there.

Life was good!

Enter 2025 and the AI revolution.

Now for every $100, you're lucky to keep $65. Why? Because every time your customer uses your shiny new AI feature, ka-ching! The meter's running. And those GPT-4 tokens?

They add up faster than a Tesla's battery drains in winter.

"But wait!" you say, "We'll just pass the costs to our customers!"

Sorry, friend. Your customers aren't stupid. They can do math too.

Here's what's actually happening

- Your competitors are absorbing the AI costs to stay competitive
- Your customers are expecting AI features as standard
- Your margins are getting squeezed from both ends
- And your investors are still expecting that magical 80% number

2025 is the year SaaS companies face a choice: Accept that the 80% margin party is over, or completely reinvent how they charge for value.

Who’s going to win? Not the lowest prices

Want to know who's going to win? It won't be the companies with the fanciest AI. It won't be the ones with the lowest prices.

It'll be the ones who figure out how to charge for outcomes instead of subscriptions.

The future belongs to those who can answer one simple question: What are your customers actually paying for - your software, or the results it delivers?

Time to get creative, folks.

The margin party's over and the innovation game is just beginning. 🎯

Who's ready for this conversation?