Product Offer Pricing

9 Product Offer Pricing

Learn how to define and manage pricing structures for simple and bundle product offers.

Pricing Overview

Use this topic to understand the various pricing structures available to you when you create simple and bundle offers.

To begin with, you can:

Set up your price lists. See Pricing Structures for more details.
Set up simple prices for offers. See Set Up Simple Prices for more details.
Go about enhancing your pricing strategy by applying advanced prices. See Set Up Advanced Prices for more details.

For a simple offer, you can add and alter prices. For a bundle offer, you can view the preset prices of the individual simple product offers and the rolled-up prices at the bundle level. You can alter these prices, but not add prices.

You can also set commitment terms for your price plans to manage your product offer prices. You can also provide device programs for lease and installments by setting up different pricing structures for your customers.

Pricing Structures

Pricing structures consist of the following elements:

Price List

A price list is a set of standard prices (including currencies) for products and services. You can use multiple price lists to offer different prices for the same product as well as specify a price list. For example, you can use separate price lists to charge business customers 30 USD a month for internet service and charge residential customers 50 USD a month for the same service.

You can use multiple price lists to offer different prices in different market segments (such as consumer or buasssiness customers, as stated in the earlier example), with different currencies, through different sales channels (such as products purchased online or at a store), and to different geographic locations.

You can define the type attribution for a price list based on customer segment, location, or any logical extensible value. For example, a price list type can be promotional, standard, or partner-exclusive, depending on how the pricing is intended to be applied.

The same price list can be used in both simple or bundle offers. Additionally, you can also view all the simple and bundle offers associated with a price list. You can remove an offer from a price list so that it no longer appears on the price list's list of offers. While editing an offer, you can modify the price items on the price list.

As a marketing manager, while creating or editing a simple or bundle offer, you can view existing price lists, select a new price list while creating or editing a bundle and edit or delete an existing price list while creating or editing a bundle, so that the offer appears with the specified price on the selected price list.

Simple Price Types

Marketing managers can use the existing price lists while creating simple or advanced pricing types.

Here are some of the simple price types:

One-Time Fee: This is a nonrecurring charge, such as setup or cancellation fees. You purchase a broadband plan and it incurs a one-time setup fee of $100. When configuring one-time fee, you can qualify the fee type as purchase, cancel, or any other custom defined type. For custom defined type, modify the lookup ORA_ATC_ONE_TIME_FEE_TYPE.
Recurring Fee: These are ongoing charges that aren't generated or affected by usage, such as a monthly subscription fee. You set up this fee to recur automatically based on the frequency of recurrence. For example, a $10 monthly subscription fee. You should now be can add recurring fees of type cycle arrear and cycle forward arrear in addition to the existing cycle fees.
Usage Fee: These are charges for the use of a service, such as telephone calls or data usage. Usage fee is measured by the metering rule. You add usage specifications through REST APIs and while creating an offer, associate a usage specification and service specification with the product specification and specify a metering rule. For example, you can set up price of $50 for 100 GB of data usage.
Existing Price Plan: A price plan specifies how to calculate the cost of a price type configured. It has the price model, price constraints, and rules which determine the actual price. You can reuse any of your existing price plans supporting different price models across simple offers, instead of creating price plans every time you create an offer. Reusing price plans gives you the ability to perform bulk or mass update to prices.

Here's an example. Let's consider a price plan monthly subscription fee of $100 which has a General Ledger Identifier and tax code, and is used in a mobile offer. Based on business requirements, the same monthly subscription fee could be reused in the mobile data offer. If you make a change from $100 to $200 in one of the price plans, both the offers will reflect the new price.

Additionally, after you have created a price plan, which also includes your financial information, you can reuse any of your existing price plans across simple offers, instead of creating price plans every time you create an offer. When you update a specific existing price plan, you perform bulk updates for pricing across offers, which use the same price plan. This helps you make updates across offers without needing you to revisit individual price plans.

As a product administrator, you can also create and define currency and non-currency balance elements through API and use non-currency balance elements to specify the allowance for a specific price. As a pricing specialist, you can use the desired balance elements while specifying the prices for your offer. For your price lists, you can specify the currency type, ISO codes, currency symbols, rounding mode, and decimal points, whereas for prices of your offers you could define the allowance types. Additionally, you can also define the consumption rules for the balance elements.
Rollovers: You can configure rollover of granted allowance balances. Rollover is a feature that credits unused balances at the end of a billing cycle to the account balance for the next cycle. For example, unused minutes can be rolled over from one month to the next. Rollover balances are different from granted allowance balances, which are only valid between two specific dates. You can also configure rollover terms for rollover charges. Rollover terms is configured using the charging terms template.

When defining rollovers, specify the following:
- The balance elements (allowances only) to roll over, e.g., Free Minutes, Gigabytes.
- The type of cycle to which the rollover applies (only Monthly frequency is supported).
- The maximum number of cycles to which a balance element can be rolled over.
- The maximum amount that can be rolled over in a cycle.
- The maximum value for a rollover balance.
- A G/L ID for the rollover charge.
Example: A maximum of 150 total minutes from previous months can be rolled over into a new month.

Here are a few examples of different simple pricing schemes:

Table 9-1 Examples of Pricing Schemes

Pricing Scheme	Example
Fixed subscription pricing	9 monthly for unlimited subscription $15 for 100 GB mailbox
Usage charges for any units of measure	$1.99 per MB of consumed data
Nonservice based charges	$10 purchase fee $20 setup fee
Physical item pricing with discounts	128 GB variant of phone - $100 with 10% discount
Fixed subscription with discounts	$50 monthly with $1 discount
Usage charges with discounts	$1.99 per MB of consumed data with $0.10 discount
Termination charges	10% flat fee or balance of contract
Time of day pricing	Set up the peak time period as 8:00 a.m. to 8:00 p.m. and the off-peak time period as 8:00 p.m. to 8:00 a.m. Configure a wireless offer with a usage fee of $0.10 for peak hours and $0.01 for off-peak hours.

Advanced Price Types

A price type in Launch can be either simple or advanced. While a simple pricing type consists of straightforward one-time fees, recurring fees, or usage fees, an advanced pricing model allows for more complex structures such as allowances, tiered pricing, and attribute-based pricing. Advanced price types provide the flexibility for dynamic pricing based on specific rules, combinations of attributes, or consumption thresholds, which helps prevent product proliferation by allowing a single offer to cover multiple pricing scenarios.

Here are the advanced pricing types available to you:

Allowance
Volume
Tiered
Setting Prices Based on Service Attribute
Setting Prices Based with Value Map, Zone Model, and Custom Event Analyzer

Allowances

You can configure allowances for a subscription and configure the allowance consumption model. You can either create one or multiple allowances for a subscription.

Here is an example of multiple allowances. For a $100 monthly fee, you can configure the following allowances:

500 minutes national calls towards mobile (same target Network) 1 month validity
100 minutes national calls towards Mobile (different target network) 10 days validity
200 minutes national calls towards fixed destinations
50 minutes international calls

Allowance grant validity based on first usage - When a subscriber purchases the offering, the validity period of the allowance is not initialized immediately. Instead, it is initialized when the subscriber first uses the product offering. Previously, allowance validity was always initialized at the time of a specific event, such as the time of purchase.

Example: The SD Voice allowance offer grants 100 voice minutes, with the validity period starting on first usage and an end period set to one month from the start date.

An allowance consumption model is a configuration that enables the system to prioritize the use of granted allowances before applying standard charges. It works by associating a usage fee with a corresponding discount that specifically checks for an available allowance balance in the subscriber's account. You can model the allowance based consumption discount for simple product offering through adjustments.

These discounts ensure that allowance grants are consumed first. When a customer uses a resource, the system checks for a valid allowance balance. If a balance exists, the discount is applied to credit back the monetary portion of the usage fee, effectively "consuming" the allowance. Once the allowance is exhausted, the customer is charged the standard fee for any further usage. You can model allowance-based consumption discounts for simple product offerings using adjustments, which is available as a specific model type. The consumption model requires a configured usage fee to track activity and a discount configured to monitor the subscriber's allowance balance. If an allowance balance is present, the system uses it; if no balance remains, the customer is debited the configured fee.
For example, a discount for a wireless product offering could provide grants for 100 off-network minutes and 50 on-network minutes per month. These discounts can be defined using attribute-based pricing and zones.

Setting Prices Based on Service Characteristic

Attribute-based pricing enables you to define a combination of attributes to formulate a price. As a pricing specialist, you can price a simple offer based on the combination of attributes of its usage specification, product specification, and customer profile specification. This enables you to offer flexible product pricing without having to define a large number of products.

In a simple scenario, the price is based on a single attribute. For example, a recurring charge for a bandwidth product could be priced based on the bandwidth value, such as $50 for 5 MBps or $75 for 10 MBps.

In a complex scenario, the price of a charge is based on more than one attribute, where the attributes may be based on different attributes. For example, the price of a recurring charge for a bandwidth product could be based on the bandwidth value in conjunction with the geographic location of the network service and the customer profile attributes. Attribute-based pricing is provided based on specific attributes of a service specification, customer profile specification, or usage specification, or a combination of the specifications. You can only use the usage specification if you have usage charges, while customer specification profiles, product specification profiles, and service specifications can be used for other pricing structures, such as one-time or recurring fees.

You can optionally configure a beat for attribute-based pricing (usage only). The beat is the pulse measure used solely for charging usage quantities. If a beat is configured at the rule level, it takes precedence over the beat defined in the charging terms.

You can also configure time of day pricing.

Here's an example of a combination of customer specification profile and service specification attributes:

Table 9-2 Example of Combination of Customer Specification Profile and Service Specification Attributes

Customer Profile: Customer Type	Product Specification Bandwidth	Allowance	Price Format	Price
Platinum	10 MBps	20 GB	Per unit or fixed price	$10
Gold	10 MBps	30 GB	Per unit or fixed price	$10
Platinum	20 MBps	40 GB	Per unit or fixed price	$20

Here's an example of a combination of usage specification attributes:

Table 9-3 Example of Combination of Usage Specification Attributes

Usage Specification: Call Origin	Usage Specification: Call Destination	Price	Price Format
India	US	$1	Per unit or fixed price
India	ROW	$0.90	Per unit or fixed price

Using Service Attributes to Provide Allowances

You can also add allowances with attribute-based pricing, based on a combination of customer profile specification and service specification. Here's an example, where monthly allowances are provided:

Table 9-4 Example of Combination of Customer Specification Profile and Service Specification

Bandwidth	Customer Type	Allowance	Price
10 MBps	Gold	10 GB per month	$10
10 MBps	Silver	8GB per month	$12
20 MBps	Gold	10 GB per month	$15
20 MBps	Silver	8GB per month	$20

Setting Prices Based with Zone Model, Value Map, and Custom Event Analyzer

Setting Prices Based on a Simple Zone Model

You can model usage price plans for simple atomic offerings based on a standard zone model with attribute-based pricing.

A standard zone model is based on the origin and destination numbers of a call. It contains rules that associate a pair of origin and destination numbers with a zone impact category. To specify origin and destination numbers, you must include an international access code (the code used to dial out of the country in which the phone number is located). Optionally, you can also include a country code (the code used to dial in to the country in which the phone number is located), an area code, a region code, a city code and a phone number prefix up to and including the entire phone number.

Set up the standard model using the REST API endpoint with profileType set as STANDARD_ZONE.

https://<HOST_NAME>/crmRestApi/atcProductCatalog/11.13.18.05/productCatalogReferenceManagement/v1/customProfileSpecification

See REST API Guide for Launch Cloud Service for more information.

The Zone Impact Category serves as a label that links a geographic location (the zone) to a specific price. These categories must be defined within the common business configuration.

Here is a sample standard zone model.

Table 9-5 Standard Zone Model

Origin	Destination	Zone Impact Category
0091	0091	IC_LOCAL
0091	975	IC_BHUTAN
0091	55	IC_BRAZIL

Setting Prices Based on a Value Map

You can model usage price plans of simple atomic offerings based on value map zone model with attribute-based pricing.

A value map is a hierarchical structure that associates zone names with values that apply to a single event attribute, such as an area code, an IP address, or a broadband bit rate. A value map can have multiple nested zones.

You use value maps in attribute-based pricing to group event attribute values into manageable categories. For example, to apply the same charge to all calls made from the New York City Area to Upstate New York, you might use the following New York Area Codes value map:

New York
- New York City Area
  - Five Boroughs: 212. 332, 347, 646, 718, 917, 929
  - Suburbs: 363, 516, 631, 845, 914, 934, 329
- Upstate: 315, 518, 585, 607, 624, 680, 716, 838

Instead of creating attribute based rules for all possible combinations of those area codes, you associate the New York Area Codes value map with the attribute based pricing and then create only one rule in which New York City Area is the origin call value and Upstate is the destination call value.

Setting Up Prices Based on a Custom Event Analyzer

You can configure friends and family or closed user group pricing. To do this:

Setup custom event analyzer rule in both Pricing Design Center (PDC) and Launch for automated distribution to PDC.
- The REST API endpoint for the custom analyzer rule is:
```
https://<HOST_NAME>/crmRestApi/atcProductCatalog/11.13.18.05/productCatalogReferenceManagement/v1/customProfileSpecification ("profileType": "CUSTOM_ANALYZER_RULE“)
```
- Configure the Impact category in the Common Business Configuration to be used in the attribute-based pricing.
Setup atomic offering with billing service type as special rating.
Use the attribute-based pricing in Launch with the custom event analyzer rule and setup special rates for each rule.

Example: $0.1 price for five family numbers. Set up Family rule custom event analyzer and use that in the attribute-based pricing. If Family rule is set as Yes, then set up a special rate for it.

Categorizing Prices for Downstream Processing and Invoicing

You can add the price tag construct on product offering prices of simple offerings. The price tag could be used for many purposes. It can be used to put in an appropriate tag on a product offering price which could be used by downstream systems when performing price overrides or to view them on invoices, or it could be used as a filter condition on adjustments.

Set up the price tag using the "Create a pricetag" REST API endpoint.

https://<HOST_NAME>/crmRestApi/atcProductCatalog/11.13.18.05/productCatalogReferenceManagement/v1/priceTag

See REST API Guide for Launch Cloud Service for more information.

The price tag is configured for a service, currency, or non-currency combination. It can take a list of values, a single value, or a range.

For example, Wireless Voice atomic offering of type with a $10 one-time fee is associated with a price tag CTag1. The CTag1 is configured with a list of values $1$, $2 for price override by the downstream system.

Here are a few examples of advanced pricing:

Table 9-6 Examples of Advanced Pricing Scheme

Pricing Scheme	Example
Fixed allowance subscription pricing	$50 monthly for up to 10 GB mobile data
Attribute-based pricing	You define a 128 GB variant phone to be priced at $250 and a 256 GB variant to be priced at $400.
Fixed allowance with overage	Overage is charged at a rate of $1 for every 15-minute increment.
Tiered and volume subscription pricing	$29 monthly for up to 10 accounts $25 for 10 to 100 accounts $23 thereafter
Multi-dimensional attribute-based pricing	128 GB phone- $100 256 GB phone- $123
Tiered usage pricing	$1 for first 10 GB $1.2 for 10 GB to 20 GB $2 thereafter
Tiered volume discounts	$0.10 discount for 1-10 movies $0.20 discount for 11-20 movies
Effective-date based pricing	$10 for Jan 1st to Mar 31st $11 from April 1st onward
Attribute-based pricing with standard zone model or value maps	On-net calls at $0.10, Off-net calls at $0.20

Note:

Regardless of whether you use a simple or advanced pricing structure, you can specify your tax codes and indicate whether your price is inclusive or exclusive of tax. Tax codes are used by taxation systems for billing. You can have vendor-specific tax codes or simple tax codes. If you choose to use tax codes, you must first load them using the REST APIs and then associate the required tax code with the relevant price plan or price component during price configuration.

Price Plans with Commitment Period

You can set up price plans with commitment terms for atomic service offers and commercial, service, and package bundle offers. Setting up price plans with commitment terms enables you to set different prices for different commitment terms in your offer, rather than setting up multiple offers. You begin by creating a price for your offer on the pricing train stop.

The next step is to create a commitment term. A commitment term is a condition in which the product offer is sold to a customer. For example, you can set a two-year commitment period for a product offer. This effectively means that when you sell this offer, the customer has committed to this offer for a period of two years.

Simple Offer Commitment Terms

For simple offers: As a product manager, you can create, edit, and associate multiple commitment terms for an atomic service offer from the pricing train stop. As a pricing specialist, you can set up different prices for each of the commitment terms configured on the offer instead of creating multiple offerings for each commitment term period. Additionally, you can also set one of the terms as a default price term. Here's an example:

Table 9-7 Price Plans for Atomic Service Offer Type

Commitment Term	One-Time Charge	Recurring Charge	Usage Charge
12 Months (default)	100	150	$1 per unit
6 Months	190	200	$2 per unit

Additionally, you can also define a price for subscribers who do not agree to a commitment period. You can define no-commitment terms in both atomic and bundle offers. Here's an example:

Table 9-8 Price Plans for Atomic Service Offer Type with and without Commitment Term

Commitment Term	Subscription Charge	Purchase fee
2 Year Term	10 USD	100 USD
No Terms	5 USD	100 USD

Bundle Offer Commitment Terms

For bundle offers: As a product manager, you can create, edit, and associate multiple commitment terms for a bundle offer. For each of the simple offers used in the bundle offer, the terms and the prices defined in the simple offer pricing train stop are used. If you choose to, you can also specify a term period for the bundle offer. In this case and based on the term that matches the simple offer, the bundle price gets determined. When the bundle price tenure doesn't match the atomic offer prices used in the bundle offer, and if you have set the no term price as the default, then the default price is used as the price for the bundle offer.

Here's an example:

A product manager creates Offer A with 6-month and 12-month commitment terms; where the default is the 6-month commitment term.
A product manager creates Offer B with only a 6-month commitment term, which is the default..
A product manager creates Bundle AB with Offer A and Offer B.
Product manager modifies or overrides the bundle-level pricing by adjusting one or more price components (one-time, recurring, or usage) for the selected commitment term.

Offer A is configured as in Table 9-9:

Table 9-9 Price Plans for Offer A

Commitment Term	One-Time Charge	Recurring Charge	Usage Charge
12 months	100	150	$1 per unit
6 months (default)	190	200	$2 per unit

Offer B is configured as in Table 9-10:

Table 9-10 Price Plans for Offer B

Commitment Term	One-Time Charge	Recurring Charge	Usage Charge
6 months (default)	190	200	$2 per unit

If Bundle AB is configured with only a 6-month commitment term, the default term prices for the simple offers are used to build the bundle price, as shown in Table 9-11.

Table 9-11 Price Plan for Bundle AB (6 Months Commitment Term)

Offer Components	Commitment Terms	One-Time Charge	Recurring Charge	Usage Charge
Offer AB	N/A	380	400	N/A
Offer A	6 months term	190	200	$2 per unit
Offer B	6 months term	190	200	$2 per unit

If Bundle AB is configured with a 12-month commitment term, the 12-month term for offer A is used, and the product manager can select the s-month term for Offer B t o apply for 12 months, as shown in Table 9-12:

Table 9-12 Price Plan for Bundle AB (12 Months Commitment Term)

Offer Components	Commitment Terms	One-Time Charge	Recurring Charge	Usage Charge
Offer AB	N/A	290	350	N/A
Offer A	12 months	100	150	$2 per unit
Offer B	6 months	190	200	$2 per unit

The product manager can also alter the terms of the bundle as needed, for example giving a 10% discount on the one-time charge for Offer A and a $1 discount on the recurring charge for Offer B, as shown in Table 9-13.

Table 9-13 Alteration Cases in Bundle AB

Offer Components	Commitment Terms	One-Time Charge	Recurring Charge	Usage Charge
Offer AB	N/A	280	349	N/A
Offer A	12 month term	90	150	$2 per unit
Offer B	6 month term (user chooses 6 month term price to apply for 12 month term at bundle level)	190	199	$2 per unit

Commitment Early-Termination Fees

The commitment may or may not be absolute. You can provide any of the following early termination fee options:

No fee
Flat fee: The customer pays flat fee, such as 100 US dollars or 75 euros.
Fixed Proration: The customer pays a flat fee regardless of the remaining length of the contract, plus an additional penalty for each remaining month in the contract. The system calculates and evenly spreads the penalty percentage across the contract duration.

For example, consider that you have a wireless voice service that has a contract period of 24 months and you set a proration termination penalty of $400. Then the application determines a 4.17% penalty per month (100/24 = 4.1666%). If a subscriber terminates the service in 14 months with 10 months left in the contract period, then he has to pay a prorated penalty of 10 x 4.17% x $400 = $166.80.
Variable Proration: The customer pays a flat fee regardless of the remaining length of the contract, plus an additional penalty that varies according to how long is remaining on the contract.
For example, consider that you have a wireless voice service that has a contract period of 24 months and total penalty of $400 and you set a variable proration penalty for different periods as follows, cancelling the subscription in the months 1 to 8 carries a penalty of 10%, months 9 to 12 carries a penalty of 5%, and no penalty after 12 months. A subscriber cancelling the subscription 4 months into the contract will incur a termination fee of $400 – 4x10%x400 = $260.
Balance of Contract: The customer pays the entire remaining contract balance.
For example, customer with a one-year commitment period with a $50 monthly fee would pay a penalty of $50 for each month remaining in the contract. A customer canceling with 5 months remaining would pay $250, and a customer canceling with 3 months remaining would pay $150.

After you have set up your commitment term, you can associate it to a price list and use it for your offer. Components in a package bundle can have their own commitment terms but can be overridden to fit the pricing and commitment needs of the package.

Alter Prices

You can alter prices for your bundle offers and if required specify the price type (specific charge component, such as one-time, recurring, or usage within a price plan) to which the discount or markup amount is applied. When you perform bundle-level alteration at service bundle, package, or commercial bundle, you can specify the particular price type to which the alteration must apply.

You can alter bundle pricing in the following ways:

Discount amount and percent: You can apply a discount to price. The discount can be a fixed amount or a percent of the original price. For example, if the original price was $100, and you applied a discount of $10, then the adjusted price would be $90. Similarly if you applied a 5% discount, the adjusted price would be $95.
Markup amount and percent: You can inflate the price by an absolute amount or percentage value. For example, if the original price was $100, and you applied a markup of $10, then the adjusted price would be $110. Similarly, if you applied a markup percent of 5%, the adjusted price would be $105.
Price override: You can override the price by an absolute value. This amount becomes the adjusted price. This is applicable only for bundle product offers. You can also override the prices for individual components of the bundle, for example simple offer or a child bundle.

You can use relative effectivity of price to manage scenarios such as offering zero charge for the first three months and then applying monthly fee in a product offering. You can use this option when defining price alterations for atomic offers.

You can also define time periods during which alterations are available. Outside of this period, the regular base price without the alterations are applied. The date for these alterations can be a calendar date, relative to the purchase date, or relative to the activation date.

You can also reuse the existing price alterations on atomic offers to avoid price proliferation.

Device Programs

You can offer your customers different options for device purchases, like leasing options and installment plans. See Device Trade In for information about other device options.

Lease Plans

Lease plans enable your customers to own the latest devices and accessories at lower upfront cost. They can use a device for the lease term period in exchange for a monthly equipment rental fee. As a product manager, for a device or accessory offer type, you can provide lease plans with an agreement and specify the lease terms, like the return checklist for devices and accessories. You can also set up a lease plan with a recurring fee. You can set up several leasing plans, based on duration or terms. See Set Up Lease Plan for information on setting up leases.

As a catalog administrator, you can create the return checklist template to support the return of leased devices and accessories. The template should include criteria to determine the working condition of the leased device, tasks to be performed by the subscriber before returning the device, and instructions for shipping the device or returning it to a store.

Installment Plans

The installment device program enables you to provide payment alternatives to your customers. As a product manager, you can provide installment plans for a device offer. This can include defining multiple installment terms, setting prices, specifying the credit approval and minimum down payment, and deciding whether the plan includes tax. You can also set the default terms as well as the upgrade rules for a plan.

You can set a one-time purchase fee for an installment agreement. You can also configure any advanced pricing, such as attribute-based pricing, that may be required for down payment or monthly installments. You can define different installment plans based on tenure, for the various entities that you choose to configure.

As a product manager, while creating a device installment plan you can specify the customer qualifiers such as customer type, loyalty tier, credit score, or rewards membership to define their eligibility. For example, you can have a North American operator model the installment plans based on credit score and an APAC operator to model the installment plan based on loyalty tier. See Set Up Installment Plan for information on setting up Installments.

Device Trade In

Configure device trade-in programs so that your customers can upgrade to the new devices by using credits or discounts based on their old devices.

You create and manage device trade-in programs from the Administration section of the Launch home page.

When you define a trade-in program, you also specify the following:

Initiative to which the trade-in program is associated.
Duration for which these programs are effective.
Device specification, which could be an IMEI number or any other specification based on the response questionnaire of the trade-in device.
Redemption or benefit type where you can specify multiple values such as gift or discount.
Whether the offer is eligible for maximum, minimum, or percentage trade-in value depending on the condition of the trade-in device.

You must define the device trade-in programs for specific product lines or categories. Doing so ensures that all offers associated with the specified product line or category are eligible for the trade-in program.

If you don’t specify the product line or category in a trade-in program, the trade-in program will be applicable to all the offers in the Launch application. You cannot specify the same product line or category in more than one active trade-in program.

Determine the Trade-In Value

Use the trade-in questionnaire to determine the quality. This questionnaire enables the run-time system to calculate the approximate value of the trade-in device. For example, you can start with whether the old device switches on or has physical damages. This enables other applications to estimate the value of the old device, which is then offset against the price of the new device.

You can configure another set of checklist questions covering what must be verified in the old devices that you receive as part of the trade-in program. This helps you revise the initial estimate based on the actual condition of the trade-in device. These questions could include verifying whether the device is locked (with an operator) and the screen is functioning properly.

When you create a questionnaire, you can:

Define one or more sets of device qualification questions with each set containing a series of questions for device trade-ins.
Use the responses to configure the flow of later questions. For example, if the device does not turn on at all, then you do not need to consider the other questions related to whether the device is working properly.
Each response in a qualifier question would have a relative value of the trade-in price of the old device as percentage reduction, minimum value, or maximum value depending on the response.
Provide a description for each choice a user would make.

Real-Time Pricing Scenarios

Following are some sample pricing scenarios.

Simple product offering with volume discount

Set up a home sensor and camera system with one-time fee and volume discount. If customers buy more sensors, they get a larger volume discount on their one-time fee.

Table 9-14 Simple Product Offering with Volume Discount

Minimum Quantity	Maximum Quantity	Discount
5	10	10%
11	20	20%
21	30	30%

Simple product offering with tiered pricing

Set up a wireless data offer with usage fee and tiered pricing. The usage is measured in minutes of voice call.

Table 9-15 Simple Product Offering with Tiered Pricing

Tier	Minimum Quantity	Maximum Quantity	Price
1	0	5	$1.00
2	5	10	$0.50
3	10	Unlimited	$0.10

Product offering allowances

Set up a 10 GB data pack.

You must set up a recurring allowance with a one-time fee of $10 and an allowance fee of $100 for 10 GB of data per month.

Product offering with effective dates

Set up a home sensor and camera system with a one-time fee and a volume discount driven by effective dates.

Effective Period: April 01, 2026 to June 30, 2026

Table 9-16 Product offer with effective dates (April-June)

Minimum Quantity	Maximum Quantity	Discount
5	10	10%
10	20	20%
20	30	30%

Effective Period: July 01, 2026 to unlimited

Table 9-17 Product offer with effective date (July-Unlimited)

Minimum Quantity	Maximum Quantity	Discount
5	10	1%
10	20	2%
20	30	3%

Tiered pricing with effective dates

Set up a wireless data offer with a usage fee and simple tiered pricing. The usage is measured in minutes of voice call.

Effective Period: April 01, 2026 to June 30, 2026

Table 9-18 Tiered pricing with effective dates (April-June)

Tier	Minimum Quantity	Maximum Quantity	Price
1	0	5	$1.00
2	5	10	$0.50
3	10	Unlimited	$0.10

Effective Period: July 01, 2026 to unlimited

Table 9-19 Tiered pricing with effective dates (July-Unlimited)

Tier	Minimum Quantity	Maximum Quantity	Price
1	0	5.00	$2.00
2	5	10.00	$1.50
3	10	Unlimited	$1.10

Set Up Simple Prices

You can set up the following types of prices for your simple offer:

Set Up One-Time Fees

To set up a one-time fee:

On the Pricing page, click Add Fee and select One-Time Fee from the drop-down list. For instructions about accessing the Pricing page, see Create a Simple Offer..
On the New One-Time Fee page, enter your fee name and ID.
In the Price Information section, specify the price type as Purchase or Penalty, select a price list, and enter the one-time price.
In the Financial Information section, select the general ledger ID and tax code, and specify whether tax is included.
In the Price Alterations section, click Add Price Alterations if you choose to apply price alterations. The alterations available to you are: Fixed Discount, Percentage Discount, Volume Discount, Tiered Discount, Fixed Markup, and Percentage Markup.
Click Save

Set Up Recurring Fees

To set up a recurring fee:

On the Pricing page, click Add Price and select Recurring Fee from the drop-down list. For instructions about accessing the Pricing page, see Create a Simple Offer.
On the New Recurring Fee page, enter your fee name and ID.
In the Price Information section, select a price list and period, and enter the recurring price.
In the Financial Information section, select the general ledger ID and tax code, and specify whether tax is included.
In the Price Alterations section, click Add Price Alterations if you choose to apply price alterations. You can reuse the existing price alterations on atomic offers to avoid price proliferation.
Click Save.

Set Up Usage Fees

To set up a usage fee:

On the Pricing page, click Add Price and select Usage Fee from the drop-down list. For instructions about accessing the Pricing page, see Create a Simple Offer.
On the New Usage Fee page, enter your fee name and ID.
In the Price Information section, select a price list and specify the price format and usage price.
In the Financial Information section, select the general ledger ID and tax code, and specify whether tax is included.
In the Price Alterations section, click Add Price Alterations if you choose to apply price alterations. You can reuse the existing price alterations on atomic offers to avoid price proliferation.
Click Save.

For example, if your plan charges $0.10, per minute of call, set the usage charge up this way:

Table 9-20 Example of Usage Fee based on Specific Plan

Name	UOM	Price	Price Format
Per Minute Call	Minute	0.10	Per Unit

Existing Price Plans

A price plan provides the ability to use complex rules to determine a price. It has a price model, price constraints, and rules which determine the actual price. You can reuse any of your existing price plans to support different price models across simple offers, instead of creating price plans every time you create an offer.

To use an existing price plan:

On the Pricing page, click Add Price and select Add Existing Price Plans from the drop-down list. For instructions about accessing the Pricing page, see Create a Simple Offer.
On the Add Existing Fees page, search for an existing price plan or select a price plan from the available list.
Click Add.

Set Up Advanced Prices

These are the different advanced prices you can set up:

Set Up Attribute-Based Pricing

You can set up attribute-based prices while you are creating your simple price structure.

On the Pricing page, from the Advanced Pricing Model drop-down list, select Attribute-Based. See Create a Simple Offer for information on how to reach the Pricing page.
1. In the Attribute-Based Pricing section, enter a pricing name and description and select the entity specifications: Product Specification, Usage Specification, Service Specification, or Customer Profile Specification.
2. Select the zone model or value map for usage-based pricing, if desired.
3. Specify the allowance details and the start and the end date.
Enable Share Allowance, if you choose to share the allowance, and specify the allowance type.
To apply overage prices, enable the Apply Overage option and specify the overage price format.
Click Add Attribute-Based Price.
- Select the attributes for which you are specifying the price, either from the SKU Template drop-down list or any other attribute you want to use to set different price. This combination of attributes uniquely identifies the variant for which you want to set the price.
- Specify the attribute details of the variant, such as brand, price tag, price format, and price.
- If you enabled Share Allowance, then specify the allowance quantity, allowance duration, and period units.
- If you enabled overage, then specify the overage price.
- Click Add.
To add attribute based prices for more variants repeat this step.
Click Save.

Set Up Allowance Prices

The non-currency balance element represents the allowances that can be configured in a simple offer. Based on your business needs you need to identify the allowances types and create the respective non currency balance elements for these allowance types. For example, free minutes as an allowance type needs to be configured as a non currency balance element.

You can create and manage your balance element using REST APIs. See REST API Reference for Launch Cloud Service.

You can set up your allowances once you have created your simple price structure. The final price is calculated by taking these allowances into consideration. You must select the one-time fee to which you need to apply advanced prices.

On the Pricing page, from the Advanced Pricing Model drop-down list, select Allowance. See Create a Simple Offer for information on how to reach the Pricing page.
In the Allowance section, select the allowance type.
Enable the Share Allowance option, if you choose to share your allowance.

Note:

You can configure an overage only for an allowance by using the Apply Overage option. Enable this option, if you choose to apply overage to the price.
Specify the start and end dates, allowance quantity, period quantity, period units, and click the tick icon.
You can add multiple allowances.
Click Save.

Your allowance is now created and displayed in the allowance section on the Price page.

Set Up Volume Prices

You can set up volume pricing after you create a simple price structure. You must select the one-time fee for advanced prices.

On the Pricing page, from the Advanced Pricing Model drop-down list, select Volume. See Create a Simple Offer for information on how to reach the Pricing page.
In the Volume Pricing Ranges section, specify the start and end dates, name, minimum quantity, maximum quantity, price, price format, and click the tick icon.
Click Add Range, if you want to add more volume prices.
Click Save.

Your new volume prices are displayed in the Volume Pricing Ranges section.

Set Up Tiered Prices

You can set up your tiered prices after you have created your simple price structure.

On the Pricing page, from the Advanced Pricing Model drop-down list, select Tiered. See Create a Simple Offer for information on how to reach the Pricing page.
In the Tiered Pricing Ranges section, specify the start and end dates, name, minimum and maximum quantity, price, price format, and click the tick icon.

If you set up a period, then the tier is effective in that period. By default, the tier is effective for the duration of the product offer. Also, if you select fixed fee, then the price is constant for the tier. If you select per unit, the price is calculated based on the consumption of units within the tier.
Click Add Range, if you want to add more tiers.

Your tier is now created and displayed in the Tiered Pricing Ranges section.

Set Up Price Alterations

Here you can add volume discount, fixed discount, percentage discount, tiered discount, fixed markup amount, percentage markup amount, allowance grants, allowance consumption model, and attribute-based alterations to the prices that you have set up.

In attribute-based alterations, you can apply discounts and markups based on the attributes of the atomic product and also specify rules when the adjustments and alterations apply. For example, gold-class customers get a 10% discount on a specific device variant in the month of June or a device variant with the color attribute as red gets a 5% discount.

About Price Alterations for Atomic Offers

The following discount and markup options are available:

Fixed discount: A fixed amount is deducted from the base price. Optionally, you can set up an allowance for your fixed discount.
Percentage discount: A percentage is deducted from the base price. Optionally, you can set up an allowance for your percentage discount.
Volume discount:A specific amount is deducted for a range of values. You can add a simple or a tiered volume discount.
Fixed markup amount: A fixed amount is added to the base price.
Percentage markup amount: A percentage is added to the base price.
Attribute-based alteration: Specify rules to determine and limit the discounts applied based on the selected product attributes. The attributes can come from product specification, service specifications, usage specifications, custom specifications, and customer profile specifications.
Price override: The adjustment value is used as the price, overriding the original price. All other prices and adjustments are ignored.
Allowance grant model: Configure allowance grants through the adjustment model grant allowance in simple offering of product type discount and time-based discount. Example: Grant 100 free minutes via recurring adjustments in wireless discount product offering.
Allowance consumption model: When you provide an allowance with a discount, the balance consumption model allows subscribers to consume the allowance first and then pay a usage fee.
Example: A Monthly recurring subscription fee grants allowances of 50 on-network and 100 off-network minutes per month through the Wireless product offering. The usage fee is configured to use attribute-based pricing using value map zoning. The wireless discount product offering is used to consume the allowances granted through the Wireless product offering.
Formula based discount: Configure the discount amount based on a formula, such as $5 off for every $50 charge for usage discount models. The formula uses scaled parameters called for every "X" units and “what to discount.” This is available for existing discount models: Discount Fixed, Discount Percentage, and Grant Allowance.
Example: Grant 1 music title for every 10 GB downloaded.

About Discount Trigger Conditions for Alterations

You can limit when adjustments are applied based on trigger conditions. These conditions will determine when a discount applies.

A trigger condition consists of the following items:

Name or expression: Name or expression of the attribute you want to compare.
Operator: Specifies how name or result of the expression is compared with a value. Valid operators include greater than, greater than or equal to, less than, less than or equal to, equal to, and not equal to, in the list.
Value: Specifies the value to compare with the result of the expression.

Following are some sample attributes you might use in a trigger:

TotalCharge: Specifies the total charge of an event.
TotalQuantity: Specifies the total quantity in an event, such as the number of minutes talked or megabytes downloaded.
BalanceOfResource[ALLOWANCE_NAME]: Balance of the allowance resource function used to check the available entitlement for allowance consumption.
Price Tag - Specifies the tag to be used as a condition for an adjustment.
Price Plan name
Currency

A trigger filter condition can include multiple conditions. All conditions must be met for the discount to be applied.

Example: If you want to set a trigger for a monthly charge greater than $500, you could configure:

Name: TotalCharge (the total charge of the event)
Operator: Is greater than
Value: 500

Price Tags

You can set up price tags on the alterations for run-time price override.

Set Up Discount Priority and Discount Mode

The following modeling enhancements have been introduced for Digital Business Experience (DBE):

Discount priority for product offer type discount and time-based discount. The discount priority determines the sequence in which the charging engine evaluates discounts when multiple discounts are applicable. A higher number indicates a higher priority.
Discount mode: This specifies the method by which the charging system should apply a discount. The available options are sequential or parallel. A sequential discount implies that the discount offer is applied to the remaining charge amount after previous discounts have been deducted. Conversely, a parallel discount is applied to the original charge amount, irrespective of any reductions from prior discount offers.
Ability to publish these definitions to Pricing Design Center (PDC).
Example:
- Discount 1 with priority 1, and discount mode as sequential
- Discount 2 with priority 2, and discount mode as parallel

As a marketing manager, irrespective of the price alteration type that you use, fixed or markup, you could specify your General Ledger ID and tax codes and indicate whether your discount or markup is either inclusive or exclusive of tax. If you choose to use tax codes, you must load your tax codes using REST APIs and use it in the price alterations. This helps the billing system to take care of the taxation and accounting.

To specify either a fixed or percentage discount:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, select either Fixed Discount or Percentage Discount, depending on your discount type.
Enter the discount amount or discount percentage.
Enter a start date and end date.
Select a General Ledger ID and Tax Code from the respective drop-down lists.
Enable or disable the Tax Included option.
Click Add.

To specify a fixed or tiered volume discount:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, click either Add Tiered Discount or Add Volume Discount, depending on your discount type.
In the Add Volume Discount or the Add Tiered Discount section, do the following:
1. Enter effective start and end dates. If you set up a period, then the tier is effective in that period. By default, the tier is effective for the duration of the product offer.
2. Select a General Ledger ID and Tax Code from the respective drop-down lists.
3. Enable or disable the Tax Included option.
4. In the Range section, specify a name, minimum quantity, maximum quantity, discount amount, price format, and click the tick icon.
5. To add more rows, click Add Range.
6. Click Add.

To specify either a fixed markup or a percentage markup:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, click either Fixed Markup or Percentage Markup, depending on your markup type.
Enter the markup amount or markup percentage.
Enter a start date and end date.
Select a General Ledger ID and Tax Code from the respective drop-down lists.
Enable or disable the Tax Included option.
Click Add.

To specify an attribute based alteration:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, select Attribute-based Alteration.
In the Identifying information section, do the following:
1. Provide the name, ID, and description.
2. Select the attributes you want to base the price alteration on. You can select from these specifications: product, service, usage, customer profile, and custom profile.
In the Attribute-based Alteration section, do the following:
1. Click Attribute-based Alteration.
2. Select the operator you want to apply to each of the selected attribute.
3. Click Add,
  The alteration row is displayed.
4. Specify the attribute values, the adjustment type and amount, and click Save.
5. (Optional) To add more attribute-based alterations, click Add, specify the information, and click Save for each.
In the Effective Period section, specify the start and end dates for the alteration.
In the Financial Information section, specify the general ledger ID and tax code from the respective drop-down lists.
Click Add.

Set Up Price Alterations for Bundle Offers

You can add discounts and markups to the prices that you have set up. Bundle price alterations are done at the package level or individual fee level. You can apply the alteration for a particular fee type: one-time, recurring, or usage, or you can apply it to all fee types. If you apply a discount to a one-time fee at the package level, then this discount is applied to all one-time fees at all levels.

The following discount and markup options are available:

Fixed discount: (Fee level only) A fixed amount is deducted from the base price.
Percentage discount: (Fee and package levels) A percentage is deducted from the base price.
Fixed markup amount: (Fee level only) A fixed amount is added to the base price.
Percentage markup amount: (Fee and package levels) A percentage is added to the base price.

As a marketing manager, regardless of the price alteration type that you use, you can specify the General Ledger ID and tax codes and indicate whether your discount or markup is either inclusive or exclusive of tax. If you choose to use tax codes, you must load your tax codes using the REST API..

Consider the following when you perform a price alteration:

You can apply price alterations at the aggregate option level for a package.
You can apply price alterations at the atomic offer's attribute-based price group level for service, commercial, or package bundles.
You can apply price alterations at the service bundle level configured inside a package.
You can apply price alterations at the atomic offer fee level inside a package.
You cannot apply price alterations at the option group level if it is part of a bundle, commercial, or package.

Note:

Any alteration configured at the top level does not percolate down to sub-levels.

To specify either a fixed or percentage discount or markup:

In the Price alterations section, select the fee type: One-time, Recurring, Usage, or ALL.
Click the corresponding Add fee type Price Alternation button.

Note:
The bundle price roll-up is based on the fee type you select.
From the Add Price Alterations drop-down list, specify your discount type or markup type.
Enter the discount or markup amount, or discount or markup percentage.
Enter a start date and end date.
Select a General Ledger ID and Tax Code from the respective drop-down lists.
Enable or disable the Tax Included option.
Click Add.

Set Up Price Plans with Commitment Period

You can set up price plans with commitment terms for service-type atomic offers and commercial, service, and package bundle offers.

First, create a price plan for your offer. Then create a commitment term.

To set up commitment terms:

From the Commitment Terms drop-down list, select Add Commitment Term.
On the New Commitment Term page, do the following:
1. Enter the name for the commitment term.
2. Enter the commitment period and unit. The combination of these two fields define the commitment schedule, for example a commitment of 2 years, where the commitment period is 2 and the unit is years.
For bundle offers, do the following:
1. (Optional) In the Termination section, enable the Allow termination option and configure the penalty associated with the termination.
2. Select the penalty type.
3. (Optional) Add a grace period to the early termination rule. For example, if you configure a grace period of 2 weeks, then the customer won't be charged a penalty until 2 weeks after termination.
Click Add.

After you have set up your commitment term, you can associate it to a price list and use it for your offer.

To associate price plans and commitment terms for an atomic offer:

Select the ellipsis for the price list with which you want to associate the commitment term.
Click Set Commitment Term.
On the Set Terms for Price List dialog box, search and select the term that you want to associate with your price list.
Click Add. The commitment term appears on the price list.
Click a specific commitment term with see the price associated to it.
Click the View or Edit Alterations to modify the term price for a price roll up, as required.
Click Save.

The modified term price appears for the price list.

Set Up Lease Plan

You can set up lease plans after you have set up the one-time fee for your device or accessory offer type for the configured price list. On the price list that you have created, select the lease option and perform the following steps:

Specify the lease term duration as fixed or the range of the lease term duration.
Enter the name, lease deferred amount, down payment, number of payments, and the frequency of payments and specify whether the lease can be terminated earlier than the lease duration.

Note:
For devices with variants, the lease deferred amount, full price per unit, and down payment fields are presented in the Attribute based lease information section, with a separate row for lease payment information for each variant.
Specify the number and units for the grace period duration.
In the Attribute based lease information section, each row represents the lease information for each variant of the device. Edit each variant and provide the lease deferred amount, down payment, and payment for each period.
In the End of lease terms section:
1. Specify the terms for returning the device.
2. Specify the terms for continuing to lease the device.
3. Specify the price for buying out the device at the end of the lease term.
If you want to allow upgrades, enable the Allow Upgrade option and specify the minimum threshold for upgrading and how to measure it.
In the Return checklist section, click Add Return Checklist to select and attach your return checklist.
In the Lease agreement section, click Add Lease Agreement to select and attach your installment agreement.
To add more lease terms, click Add Term. This option is not available for devices with variants.
Click Update.

Set Up Installment Plan

You can set up installment plans after you have set up the one-time fee for your device or accessory offer type.

You can create different device installment plans with conditions, such as credit score, loyalty tier, and rewards membership. You create an installment plan using the installment option in the created price list.

On the Installment Plans page, specify the details, including the tenure as a duration or a range with minimum and maximum value and the frequency of payment, depending on your business requirement.
If you want to allow upgrades, enable the Allow Upgrade option and specify the threshold conditions for an upgrade to be applicable:
1. How the minimum threshold for upgrade must be measured.
2. Minimum threshold for upgrade.
Attach your installment agreement and specify the name of the duration and number of installments, and select the check-mark icon.
Save the details.

Note:

If you want to add additional qualifiers, you can do so using customer profile specification endpoints in the REST API. Qualifiers are created as attributes of a customer profile specification. See REST API Reference for Launch Cloud Service.