Reviewing Pricing Options for Plans and Plan Templates

In the Pricing Editor, when you’ve added an Aggregation for a Plan or Plan Template, there are various options available to configure the exact pricing structure you want using that Aggregation:

  • Description. Enter a description for the Pricing.

  • Minimum spend. Enter a minimum spend for this Pricing. If the calculated charge using the Pricing falls below this value, then at billing an additional line item will be added to bring the charge up to the value you’ve entered. Default is 0.

    • Minimum spend billing. You can override the Organization-level setting for minimum spend billing in arrears/in advance.

    • Minimum spend description. You can enter a description for any Minimum spend amounts, which will appear in the bill line item.

  • Usage accumulates over the entire plan contract period. Enable a Pricing where the pricing tiers you set up are evaluated across the entire period the Plan is active for an Account, and not simply evaluated against each individual billing period. For example, suppose you have configured a Tiered pricing structure for charging per number of requests made to your service: $1 per request for the first 100 requests; $0.80 per requests for the next 200 requests; $0.60 per request for any above 200. Suppose an Account has this Plan attached with usage accumulation enabled and the billing is monthly:

    • If the Account holder makes 70 requests in the first month, the charge will be 70 at $1 = $70.

    • If a further 80 requests are made in the second month, the charge will be: 30 at $1 = $30 and 50 at $0.80 = $40 for a total of $70.

    • If the number of requests jumps to 220 in the third month, the charge will be 150 at $0.80 = $120 and 70 at $0.60 = $42 for a total of $162.

Tip: The default setting for usage accumulation is disabled.

  • Apply as. Select the way in which you want the Pricing to apply for a customer Account that you put on a Plan to which the Pricing is applied. Three options:

    • Debit. This is the default setting for the typical case where you want the amount calculated to be added to the bill as a debit, which the end customer pays for.

    • Product Credit. Select this if you want the amount calculated to be added to the bill as a credit (negative amount) which reduces the bill total. To prevent negative billing, the bill will be capped at the total of other line items for the same Product.

    • Global Credit. Select this if you want the amount calculated to be added to the bill as a credit (negative amount) which reduces the bill total. To prevent negative billing, the bill will be capped at the total of other line items for the entire bill, which might include other Products.

  • Pricing Type. Allows you to select a type of pricing structure that is appropriate for how you want to charge using the selected Aggregation. There are five options:

    • Tiered. Select to configure tiered price ranges where units are priced depending on which tiered range they fall in. For example, you might set up a first tier charging $0.50 for the first 50 units used; a second tier charging $0.25 for the next 100 units used; a third tier charging $0.15 for any units used above 150 to an unlimited number.

    • Volume. Select to configure charges according to the highest band reached by usage. For example, you might set up three bands of price range where the first band charges $0.50 for the first 50 units used; the second band charges $0.25 for the next 100 used; the third band charges $0.15 for any units used above 150 to an unlimited number. If a customer uses 120 units, they are charged at $0.25 per unit for all units used. If a customer uses 170 units, they are charged at &0.15 for all units used.

    • Stairstep. Select to configure pricing bands and charges based on the highest band reached. For example, you might set up three pricing bands where the first band charges $2 for any usage between 1 and 50 units used - a customer who uses 1 unit is charged the same as a customer who uses 49 units; the second band charges $1.60 for anything between 50 to 100 units used; the third band charges $1.40 for 150 units used and above. The customer who uses 125 units will be charged $1.60; the customer who uses 210 units will be charged $1.40.

    • Custom Tiered. Select to configure a custom pricing structure which combines a fixed charge and a per unit charge. For example, you might want to charge on a per-unit basis across several tiers up to a maximum and then charge an additional fixed overage charge for any usage that exceeds the maximum.

    • Custom Volume. Select to configure a custom pricing structure which combines a fixed charge and a per-unit charge. For example, you might want to set up three charging bands up to a maximum where customers are charged on the basis of the highest band they reach but any usage over the maximum incurs an additional fixed overage charge.

  • Start date. Enter the date from which you want the charges using this Pricing to apply for the Plan. Note that if you have set up a pricing using an Aggregation and you then edit the pricing structure, you can choose to either:

    • Apply these changes from. Enter a date from which the new Pricing will come into effect. The original pricing structure will be applied for billing up to that date.

    • Apply your editing changes to existing pricing. This means that the pricing structure will be updated immediately and will be applied to any re-calculated bills that were first calculated using the original pricing structure.

Tip: Effect on Bills for mid-billing period price change? Note that if you update a Pricing mid-billing period, then a bill line item will be produced for each pricing change in that period's next Bill. This occurs regardless of the Aggregation method used for a Pricing.

  • End date. Enter a date on which you want the pricing to cease to apply to the plan.

  • Price per unit. Enter the price per unit you want to charge end customer Accounts who are put on the Plan. Note that you can enter negative values, but please review the implications of doing so in the Using Negative Pricing for Plans section.

Important: Price per unit! This depends the Quantity per unit configured for the Aggregation used for the Pricing. For example, if you're using an Aggregation that is derived from a gigabytes Meter measure field and Quantity per unit is set at 500, a Price per unit of $0.25 means that end customer Accounts put on the pricing Plan will be charged $.025 per 500 gigabytes used.

Next: Pricing Plans and Plan Templates