Strategy question
Cursor uses a credit-based pricing model. How would you redesign pricing to reduce user confusion?
- Cursor
- Strategy
- Hard
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What this question tests
Pricing design that solves a real, named user complaint, confusion, rather than a generic pricing overhaul.
How to approach it
- Clarify the specific confusion: users cannot predict how many credits a given task, like a large refactor versus a small edit, will consume before running it.
- Propose upfront cost estimation: show an estimated credit cost before executing an agentic task, similar to a price preview, so users can decide before committing.
- Propose simplifying the underlying unit: consider whether credits should map more directly to a familiar unit, like requests or time, rather than an opaque computed score.
- Propose a usage dashboard showing real-time remaining credits and a clear breakdown of what consumed them recently, reducing the feeling of an unpredictable black box.
- Define success: reduction in support tickets about credit confusion, and reduction in negative sentiment specifically mentioning pricing in reviews or feedback.
What a strong answer includes
- Targets the actual named problem, unpredictability before committing to an action, with a concrete pre-task cost estimate rather than a full pricing model rewrite.
- Proposes making the underlying unit more intuitive, tying credits closer to a familiar concept like task type or time, rather than an opaque scoring formula.
- Adds a transparent usage dashboard as a trust-building mechanism, addressing the feeling of losing credits without understanding why.
- Sets a measurable target, reduction in pricing-related support tickets and negative reviews, directly tied to the stated problem of confusion.
Common mistakes
- Proposing to eliminate credits entirely for a flat subscription, which may not fit the variable cost of different AI tasks and ignores the actual ask.
- Ignoring the need for upfront cost visibility before a task runs, which is the core source of confusion.
Likely follow-up questions
- How would you estimate credit cost accurately before running a task whose complexity is not fully known in advance?
- What would you do if simplifying the pricing model reduced revenue from heavy users?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop