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Note: This is an advanced topic relating to sophisticated tiered pricing based on multiple combinations of inclusions to determine tier values for advanced pricing.

Glossary:

Term

Description

Tier Count

The current number of things you have, to determine which tier you fall in to

Tier Structure

The collection of tiers set up on an entity, consisting of thresholds, price and rate plan

Counting Rule

The collection of packages or services that will make up the tier count of a package frequency

Outline:

A common use case in many markets is the ability to offer customers different prices for services based on the quantity of services that they purchase.  Typically this means the more they purchase from the customer, the lower the price per service, OR the more usage they incur during a billing period, the lower the price per unit.

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Tiered Subscription/Recurring Pricing:

  1. On a Package Frequency, the administrator selects whether the package frequency is tiered or not. If they select tiered, they can attach a Counting Rule to that package frequency.  This will draw the service pricing part of the screen based on the Tier By/Across Status selection of the counting rule.

    The administrator can then set up the tier structure per service and select a price per tier.  It is important to note the service or package set up to have tiered pricing does not have to be in the counting rule.  You could be counting totally different services to determine the tier count of this service.

    1. A simple case, you can have a counting rule set up to count instances of Service A, and attach it to a Package that contains Service A.  Tiered pricing can be set up on Service A, so that based on how many instances of Service A an account has, the price can change based on the tier structure. OR

    2. You can have a counting rule set up to count instances of Package A, and attach it to a Package that contains Service A.  Tiered pricing can be set up on Service A, so that based on how many instances of Package A an account has, the price of the Service can change based on the tier structure.

    3. A slightly more complex case, you can have a counting rule set up to count instances of Service A and Service B, and attach it to a Package that contains Service A.  Tiered pricing can be set up on Service A, so that based on how many instances of Service A and Service B an account has (regardless of package), the price can change based on the tier structure.  Likewise, that counting rule could be applied to another package that contains Service B, so that tiered pricing could be set up on that service too.  In this way the prices and even the tier structure can be different between the two catalog package services, but the Count of services when applied to an account will be the same.

    4. Finally, you can have a counting rule set up to count instances of Service A and Service B, and attach it to a package that doesn't contain either Service A or B (For example, a service plan Package that charges a lower rate based on how much an account buys).  Tiered Pricing can be set up on Service C so its price is dependent on how many of Service A and B an account buys.

  2. Packages can still be sold to accounts as normal.  Tier setup is copied down from the catalog, and can be overridden at the Account Price Plan or Account Package level.  Things that can be overridden at the account level:

    1. Tier Structure (0-10, 11-20, 21+)

    2. Tier Price

  3. During Billing, any Counting Rules that are attached to an Account Package are evaluated based on that account.  In an Account A with a Package X with a counting rule counting instances of Service 1 and Service 2 for all statuses, at the time of Billing, LogiSense Billing counts up all instances of Service 1 and 2 in that account to determine the tier count.  Let's say Service A is in package X.  Using the tier count, we determine the tier that Service A should be billed at based on the tier count, then those instances of Service A are billed based on their status and the tier count.  See the examples below for some more clarity.

Tiered Rates and Aggregates:

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Progressive pricing is currently not supported on counting rules.  

For Bracketed pricing, based on the count of the Counting Rule at the end of the billing period, the price of the rate will be calculated and applied to the usage against that rate.  If Account Z has combined 300 of Service A and B at the end of the Billing Period, any usage that came in using rate US1 would be charged at $0.75 per GB

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Example 1 : Plans with tiered pricing on their SIMs.  They would have different packages set up to represent US based SIMs and global SIMs.  The counting rule is established on the combination of US only and global SIMs, but the actual MRC price in each threshold bracket change per SIM.

Active SIMs

Monthly Fee


US Only

US, CA, EU & AU

10000 - 15000

$1.10

$2.25

15001 - 25000

$0.85

$1.95

25001 - 35000

$0.79

$1.70

35001 - 50000

$0.75

$1.55

50 001+

$0.72

$1.40

Billing Scenario 1.1: Account A has 10,000 of the US Only service Active and 10,000 of the global service Active.

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Example 2: Tiered Across Status. Statuses "Active" and "Pre-Active" count towards the tier count

Active SIMs

Monthly Fee


US Only (Active)

US Only (Pre-Active)

US Only (Suspended)

US, CA, EU & AU (Active)

US, CA, EU & AU (Pre-Active)

US, CA, EU & AU (Suspended)

10000 - 15000

$1.10

$1.00

$0.50

$2.25

$2.00

$2.00

15001 - 25000

$0.85

$0.80

$0.50

$1.95

$1.80

$1.50

25001 - 35000

$0.79

$0.75

$0.50

$1.70

$1.65

$1.50

35001 - 50000

$0.75

$0.73

$0.50

$1.55

$1.45

$1.25

50 001+

$0.72

$0.70

$0.50

$1.40

$1.30

$1.20


Billing Scenario 2.1: At the end of the Billing period, Account A has 10,000 of the US Only Active, 2000 US Only Pre-Active, 1000 US Only Suspended, 10,000 of the global service Active, and 1500 global service Suspended.

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Example 3: Tiered Across Status. Statuses "Active" and "Pre-Active" count towards the tier count

Active SIMs

Monthly Fee


US Only (Active)

US Only (Pre-Active)

US Only (Suspended)

US, CA, EU & AU (Active)

US, CA, EU & AU (Pre-Active)

US, CA, EU & AU (Suspended)

10000 - 15000

$1.10

$1.00

$0.50

$2.25

$2.00

$2.00

15001 - 25000

$0.85

$0.80

$0.50

$1.95

$1.80

$1.50

25001 - 35000

$0.79

$0.75

$0.50

$1.70

$1.65

$1.50

35001 - 50000

$0.75

$0.73

$0.50

$1.55

$1.45

$1.25

50 001+

$0.72

$0.70

$0.50

$1.40

$1.30

$1.20


Billing Scenario 3.1: Account A has 10,000 of the US Only Active, 2000 US Only Pre-Active (at time of Billing). During the period for September, they had a group of 2500 SIMS transition from Active to Suspended on the 10th, and they transitioned back to Active on the 25th.

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