Pricing Models and Modifiers
You can use pricing models and pricing modifiers when building your 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 set prices based on how many items you sell. No matter which model you use, Commerce web stores show the total price on the page.
Subscriptions provide two pricing models:
-
Tiered Pricing
-
Volume Pricing
The differences between these two models are explained below, using the same number of items to show how each one affects the total cost.
Tiered Pricing
With tiered pricing, each item is billed based on its price tier, no matter how many items are sold. Don’t 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. It’s best not to set minimums or maximums on the intermediate tiers.
Tiered Pricing Example
|
Tier |
Item Count |
Cost per Item |
|
Tier 1 |
1 - 10 |
$3.00 |
|
Tier 2 |
11 - 20 |
$2.80 |
|
Tier 3 |
Over 20 |
$2.50 |
In this example, the account has three pricing tiers and the customer is buying 40 items.
-
The first 10 items fall under Tier 1 and are charged $3.00 each.
-
The next 10 items (items 11–20) are in Tier 2 and cost $2.80 each.
-
The last 20 items (items 21–40) are in Tier 3 and cost $2.50 each.
Therefore, the total for all 40 items is:
-
10 items at $3.00/each = $30.00
-
10 items at $2.80/each = $28.00
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20 items at $2.50/each = $50.00
-
Total of all items = $108.00
Volume Pricing
With volume pricing, all items are billed at the same price based on how many a shopper orders. Minimum and maximums don't display for fixed subscription lines, and it’s best not to set them.
Volume Pricing Example
|
Volume Level |
Items Ordered |
Cost per item at this volume level |
|
Volume Level 1 |
1 - 10 |
$3.00 |
|
Volume Level 2 |
11 - 20 |
$2.80 |
|
Volume Level 3 |
Over 20 |
$2.50 |
In this example, the customer buys 40 items, so Volume Level 3 applies. Each item costs $2.50, for a total of $100.00.
Pricing Modifiers
SuiteBilling Subscriptions provides two pricing modifiers:
You can combine these modifiers with different pricing models, like Tiered or Volume, to give your customers extra savings or volume discounts.
Subscriptions for Commerce websites supports the pricing model and modifier combinations shown below.
|
|
Tiered Pricing Model |
Volume Pricing Model |
No Pricing Model |
|
Discount Pricing Modifier |
X |
X |
X |
|
Usage Pricing Modifier |
|
|
X |
Discount Pricing Modifiers
Discount pricing modifiers take a percentage off the total purchase amount, based on the total net amount.
Example:
-
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 don’t change the total price directly, but they affect how the price shows up 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 isn't known until the end of the month.