The Missing Link Between Product and Pricing
Why Product Innovation and Pricing Strategy Must Evolve Together
A strong product does not automatically produce a strong commercial model. As software companies introduce new features, usage metrics, AI capabilities, and packaging options, the way they create value can quickly become disconnected from the way they charge for it.
In this conversation, Kevin McCabe of Applied Frameworks and Tim Neil of LogiSense examine what happens when product strategy and pricing strategy are developed in separate parts of the business. Product teams may focus on functionality, customer needs, and technical delivery, while finance, sales, and pricing teams are left to determine how those investments should generate revenue.
That disconnect can create pricing models that are difficult for customers to understand and challenging for the business to support. It can also lead to inconsistent discounting, frequent pricing exceptions, declining margin visibility, and billing requirements that were not considered when the product was designed.
What you will learn
- How misalignment develops between product and commercial teams
- Why pricing models often fail to keep pace with product evolution
- What rising discounts and pricing exceptions may reveal
- How pricing complexity can affect customer confidence and expansion
- Why billing and operational capabilities should influence pricing design
- How AI is changing the economics of software products
- Why token-based pricing may not reflect the full value AI creates
- How pricing signals can inform packaging, segmentation, and product decisions
The discussion also explores the importance of budget predictability. Even when customers see clear value in a product, they may hesitate to increase adoption when they cannot anticipate what their usage will cost. This makes transparency, packaging, and pricing design critical to long-term growth.