Usage-based pricing can be a good option for some companies, but it is not without its disadvantages. Usage-based pricing can be challenging to implement and administer because you need to track usage data for each customer and determine the prices based on that usage. This can be time-consuming and difficult to do accurately. Additionally, customers may be surprised and frustrated by their bills. Usage-based pricing can lead to lower product or service consumption if the customer is trying to keep costs to a minimum.