💰Price Plans
Last updated
Last updated
A price plan determines how you want to charge a customer for the consumption of a product. Each product can have multiple price plans, even a tailored plan per customer if this is how you Go To Market.
However, It's more common to reuse the same few plans across all customers. For example, you may have a standard tiered plan for the product "Users" as well as a few custom plans for larger enterprise customers, where individual rates have been negotiated.
A usage-based price plan is a rate applied to a consumed unit metric, which is defined for the product. Typical consumption metrics are seats, text messages, emails, storage, API calls. Your customer pays for how much they use your product. You're free to define any consumption unit you want to charge for in Plock. Plock supports multiple usage based pricing models:
No tiers , the same rate is applied regardless of consumed quantity. No volume benefits. Could be 5 EUR per seat per month, regardless of numbers of seats.
Tiered pricing, the rate applied depends on the consumed quantity so far in the billing period. In the Example below, a price plan for number of Users is created that automatically gives customers volume rebates. For the first 100 users, the fee is 5 EUR per user/month. For the next 900 user, the fee is 4 EUR per user/month. For any additional users, the fee is 3 EUR per user/month.
Tiered block ranges, you still define a set of ranges like above, but instead of charging per user, you decide to charge for blocks of 10 users, or any other defined block range.
Tiered flat ranges, the rate applied still depends on the consumed quantity, but a flat fee is charged for each range. In the example of Users, the customer is charged a flat fee of 500 EUR per month for anything in the range of 1 to 100 users. For the next range of up to an additional 100 users the customer is charged a flat fee of 400 EUR per month. If the customer has 120 users a specific month, the customer will be charged 900 EUR in this example.
Tiers where the volume discount is applied from the first unit. If you want your customers to benefit from volume discounts from the first unit, select the type "From start, if the total is". Which means the rate for a specific tier, will be applied from the very first unit. With this setting, a customer with 150 Seats, would be charged 4 EUR per seat for all 150 seats instead of 5 EUR for the first 100 seats, and 4 EUR for the next 50 seats. The impact is visualised in Plock's price plan visual preview.
Tiers, where customers only pay for the tier they are in. This model can be very useful if you want to make it easy for customers to forecast their cost of usage. Each tier typically comes with a flat fee using this model, giving the customer some flexibilty for seaonal changes and still same price. Not until you enter a new volume tier, a new flat fee kicks in. For this model, always check the impact of the price model for each volume tier in Plock's price plan preview.
The most common business model is a hybrid solution, where you charge your customer a fixed fee for access to your Software or service. Like a Software License fee. In addition to the License fee, you apply Usage Based Pricing to charge your customers for consumption of different metrics.
A fixed fee is the easiest price plan to setup, and it doesn't even require any consumption data feed.
