Listen "The Gross Margin of AI Products"
Episode Synopsis
AI-Native products and AI products integrated into a traditional SaaS platform have different Cost of Goods Sold (COGS) than a SaaS platform, which directly impacts Gross Margin. With over 80% of SaaS companies already integrating AI products into their platform, the Metrics Brothers knew it was time to discuss the Gross Margin and Cost of Goods Sold considerations of deploying an AI product:Topics that CAC and Growth discuss during this episode includes:Gross Margin benchmarks for AI products versus SaaS platformsCost of Goods Sold (COGS) for SaaS productsCost of Goods Sold (COGS) for AI productsGeneral Rules for COGS vs OPEX categorizationIncreasing AI product Gross Margins with scaleThe cascading reality of AI investments and build-outsIf you are considering investing capital and resources into an AI product, be it in an AI-Native product or as an add-on to a legacy SaaS platform, this conversation between CAC and Growth provides multiple insights and considerations for many Cost of Goods Sold components for AI products vis-à-vis traditional SaaS products.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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