Pay-per-Part at TRUMPF
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Frequently asked questions
Q: What is the practical difference between usage-based and outcome-based pricing?
A: Usage-based pricing charges for measured consumption (hours, cycles, units processed) - the customer pays for what they use. Outcome-based pricing charges for a defined result (uptime percentage, yield, availability) - the OEM takes on delivery risk. Usage-based is simpler to implement; outcome-based creates stronger differentiation but requires a more mature operating model.
Q: How do you choose between a flat subscription, usage-based, and outcome-based model?
A: Start with metering maturity and risk appetite. If you cannot reliably measure usage, start with a flat subscription. If you can meter but are not ready to guarantee outcomes, go usage-based. If you can measure, deliver, and absorb performance risk, outcome-based pricing captures the most value. Many OEMs progress through these stages sequentially.
Q: What infrastructure does an OEM need before launching usage-based pricing?
A: At minimum: a metering system that records consumption reliably, a data pipeline that feeds into invoicing, contract terms that define how usage is counted and billed, and a dispute resolution process for measurement disagreements. IoT makes this easier but is not always required - manual reads or periodic inspections can work for early deals.
Q: How do you structure pricing bands and caps in a usage or outcome model?
A: Use a floor (minimum commitment) to protect the OEM's base economics, a target band (normal pricing per unit), and a cap (maximum charge) to protect the customer from runaway costs. This structure gives both parties predictability and makes budget approval easier on the customer side.
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