SaaS-flation is raising prices - vendors need to respond by emphasizing value

This month's inflation numbers gave the SaaS pricing conversation a fresh data point. Software prices rose at a record pace in June, up more than 17% year over year, according to Bureau of Labor Statistics figures covered by the Washington Post and confirmed independently by CNN and other outlets tracking the same release.

Economists point to the AI build-out — memory and chip scarcity pushing up component costs, alongside genuinely new AI capability layered onto existing products.

Let's call it SaaS-flation — subscription costs climbing faster than most customers can point to a matching increase in value received.

This pattern has played out across the industry for a while now. Some price increases attach an AI label to what is really margin recovery, unrelated to any AI feature any given customer actually uses. An analysis of recent SaaS price hikes by Lynton Webfound that AI has become a legitimate-sounding...

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