TLDR Founders · MISCELLANEOUS

THE 90% GROSS MARGIN ERA IS OVER

links.tldrnewsletter.com2 min read

Summary from the TLDR Founders newsletter

AI companies need a new way to pitch their economics. The cost of serving customers is much higher with AI. Companies need to separate gross margin by customer and gross margin by pricing cohort. When changing pricing, you ideally want to show investors that customers on the new model have higher margins than those on the old one, and that the gap keeps widening.