Pricing Models and Modifiers

Pricing models and pricing modifiers are available when building a pricing strategy in NetSuite SuiteBilling.

See the following topics for information about structuring your pricing:


See the SuiteBilling help topic Creating Price Plans for information about how to create price plans using SuiteBilling.

Pricing Models

Pricing models let you structure pricing based on the number of items sold. Regardless of the pricing model configured in the price plan, Commerce web stores calculate and display the total price on the page.

Subscriptions provide two pricing models:

  • Tiered Pricing

  • Volume Pricing

The differences between the two pricing models are described below. The examples use the same number of items being purchased to illustrate how each of these two models results in different total customer costs.

Tiered Pricing

With tiered pricing, each item is billed according to its price tier, regardless of the total number of items sold. Do not mix different types of tiers on the same subscription line. The subscription line details page only displays the minimum of the first tier and the maximum of the last tier. The subscription line summary displays intermediate tiers. Best practice is to not set a minimum or maximum on intermediate tiers.

Tiered Pricing Example


Item Count

Cost per Item

Tier 1

1 - 10


Tier 2

11 - 20


Tier 3

Over 20


For this example, the account is set up with three pricing tiers and the customer is purchasing 40 items.

  • The first 10 items are in Tier 1 and are charged at the Tier 1 rate of $3.00 each.

  • The second 10 items (items 11 through 20) are in Tier 2 and are charged at the Tier 2 rate of $2.80 each.

  • The remaining 20 items (items 21 through 40) are in Tier 3 and are charged at the Tier 3 rate of $2.50 each.

Therefore, the total net revenue impact for the 40 items is:

  • 10 items at $3.00/each = $30.00

  • 10 items at $2.80/each = $28.00

  • 20 items at $2.50/each = $50.00

  • Total of all items = $108.00

Volume Pricing

With volume pricing, the entire number of items are billed at the same price based on the number of items being ordered. Minimum and maximums do not display for fixed subscription lines. Best practice is to not set minimums or maximums on fixed subscription lines.

Volume Pricing Example

Volume Level

Items Ordered

Cost per item at this volume level

Volume Level 1

1 - 10


Volume Level 2

11 - 20


Volume Level 3

Over 20


For this example, the customer purchases 40 items. Using the previous table, Volume Level 3 applies. Therefore, each of the 40 items will be charged at a rate of $2.50 for a total of $100.00.

Pricing Modifiers

SuiteBilling Subscriptions provides two pricing modifiers:

These modifiers can be combined with different pricing models, such as Tiered and Volume, to provide additional savings (and volume purchase incentives) for your customers.

Subscriptions for Commerce websites supports the combinations of pricing models and pricing modifiers shown below.


Tiered Pricing Model

Volume Pricing Model

No Pricing Model

Discount Pricing Modifier




Usage Pricing Modifier




Discount Pricing Modifiers

Discount pricing modifiers structure discounts based on the total net amount of the purchase. These discounts are expressed as a percentage off the total purchase amount.


  • Total Amount: $95.00

  • Discount: 10%

  • Calculated value of the discount ($95.00 * 10%) = $9.50

  • Total amount after discounts ($95.00 - $9.50) = $85.50

Usage Pricing Modifiers

Usage Pricing Modifiers do not directly change the total price, but they change how the price is shown in Commerce websites. Since the total amount is based on how much a service is used, the total is not known prior to billing. For example, if you charge $5.00 per megabyte used per month, the total is not known until the end of the service period.

Related Topics

General Notices