Tiered Monthly Recurring Charge
- Tim Neil
Tiered pricing can be set on subscriptions to handle subscription charges based on volume. Tiered charges can be applied to a service to set pricing thresholds based on service volumes. There is no limit to the number of thresholds that can be configured. Tiered charges can be configured through the product catalog and customized at the account level.
Two types of tiered pricing models are supported:
Bracket:Â The price charged for all counts of that service is based on the price tier that the service number falls into
Progressive:Â The price charged for all counts of that service is based on a progressive scheme where the first X number of services are charged tier 1 prices followed by the next tier of services charged tier 2 prices etc.
The table below shows a sample calculation of bracketed and waterfall pricing based on tiers.
Tier Threshold | Price |
|---|---|
0-100 | $2.00 |
101-200 | $1.50 |
201+ | $1.00 |
Tier Type | Sample Calculation |
|---|---|
Bracket Pricing : 250 Subscription Purchase | 250 subscriptions * $1 = $250 |
Progressive Pricing: 250 Subscription Purchase | (100 subscriptions * $2) + (100 subscriptions * $1.50) + 50 subscriptions * $1 = $400 |
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