How do you control token costs?

Runaway token spend comes from no unified gateway, no usage baseline, and no model tiering. Set up a unified model gateway, tiered accounts, per-use-case budgets, and monthly reviews — instead of letting every department buy its own API keys.

Key points

  • Unified model gateway (e.g. LiteLLM or enterprise gateway) for centralized billing and audit
  • Tier models by use case: small models for simple tasks, large models for complex reasoning
  • Set account/department quotas and alert thresholds
  • Optimize prompts and RAG to cut wasted tokens (caching, summarization, length limits)
  • Monthly review: use case ROI vs token cost

How to do it

  1. Map existing API keys and callers; consolidate behind one gateway
  2. Establish a cost baseline: per-use-case, per-conversation, per-token averages
  3. Set budget caps and an overspend approval process
  4. Optimize prompts and retrieval scope for high-frequency use cases

Related reading

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