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Business Models in the Age of IoT: Enabling Usage-Based Pricing | IoT For All

The Internet of Things has transformed our world (mostly for the better), and it certainly goes hand in hand with the usage-based or consumption-based pricing.

Businesses know that usage-based pricing appeals to the end-customers due to the low cost of entry. This allows them to drive sales volumes and higher revenues. However, usage-based billing and pricing have their cons, too, but the advantages seem to overweigh the negatives. In short, here is what is happening at the moment.

New Opportunities in Usage-Based Pricing
IoT has contributed massively to usage-based billing, primarily due to its easy access to data. Businesses can use this data to track customers usage more easily and charge them accordingly.

Although the IT, industrial sector and consumer discretionary arena appear to be taking the most advantages, other industries will follow soon. Interestingly enough, technology is advancing at a rapid rate, but tech products are only going to become more accessible at lower price-points. For this reason, IoT seems perfect for usage-based billing.

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Business Models in the Age of IoT: Enabling Usage-Based Pricing | IoT For All.