Subscription 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:
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
-
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.