A pricing strategy where the cost of a product or service is set at different levels, or tiers, based on various factors such as quantity, quality, features, or customer segments.
Tiered pricing is a pricing strategy where the cost of a product or service is set at different levels, or tiers, based on various factors such as quantity, quality, features, or customer segments.
How to add a product based on tiered pricing in Zenskar
Important
Refer the products documentation to learn more about the concept of products in Zenskar.
Step 1: Create a product based on tiered pricing
- Navigate to Contracts > Products, and click on the ADD PRODUCT button.
- Select the Tiered Pricing from the drop-down.
- Select or deselect Metered:
- If the service or product is metered, select the appropriate usage aggregate from the drop-down.
- If the service or product is not metered, enter the quantity.
- Fill in all other details, and select all the desired features.
- Save the product.
Example: metered product
Details:
- Computing resources are being sold at:
| Number of units | Price (USD per hour) |
|---|---|
| 1-99 | 0.01 |
| 100-200 | 0.005 |
| 201-∞ | 0.002 |
- Owing to the nature of consumption, this is a metered product.
- The usage aggregate named Compute is being used to fetch consumption details for a given billing period.
Example: non-metered product
Details:
- Cereals are being sold at:
| Number of units | Price (USD per pound) |
|---|---|
| 1-100 | 1.5 |
| 101-200 | 1.3 |
| 201-∞ | 1.25 |
- 500 units are being sold.
- This is a non-metered product.
Difference between volume and tiered pricing
Volume versus tiered pricing
Let us assume:
- you are in the business of selling software licenses
- you are selling 250 licenses to a particular customer
Number of licenses Price per unit in USD 1-100 100 101-200 90 201-∞ 80 Comparing the total cost of 250 licenses in both the models:
Number of licenses Tiered pricing Volume pricing 1-100 100 * 100 101-200 100 * 90 201-250 50 * 80 250 * 80 Total 23000 20000