Phantom Bundle

Note: This topic is not applicable for the health insurance business.

In case of a phantom bundle, pricing is not defined at the bundle level. Instead, pricing is defined separately for each price item in the bundle. The system determines the price by identifying the tiering range of each price item within which the total quantities of services used for all price items in the bundle fall. Let us understand this with the help of an example.

Bundle A, which is a phantom bundle, contains the following two price items:

  • Price Item X - The following tiered pricing is defined for Price Item X:

    Quantity Range Rate ($) per unit
    1 - 3000 3
    3001 - 6000 2
  • Price Item Y - The following tiered pricing is defined for Price Item Y:

    Quantity Range Rate ($) per unit
    1 - 5000 2
    5001 - 10000 1

Now, when the user consumes 2500 units of Price Item X and 3500 units of Price Item Y, the system adds the quantities of services used for all price items in Bundle A (i.e. 2500+3500=6000), and then determines the range of each price item within which the total units (i.e. 6000) fall. In this case, the total units fall in the 3001 - 6000 range of Price Item X and the 5001 - 10000 range of Price Item Y, and therefore the system uses $2 and $1, respectively, as the rate for calculating charges (i.e. (2500*2)= 5000 and (3500*1)=3500). This helps the customer to take advantage of the lowest rate.

If the multi parameter based pricing feature is enabled, you can determine the price item utilization in a phantom bundle based on multiple parameters. For example:

Bundle A Country Currency
Price Item X US USD
Price Item Y Germany USD

Price Item X and Price Item Y are added in Bundle A. Price Item X and Price Item Y utilization in Bundle A is determined based on two parameters - Country and Currency. Before you add price item to a phantom bundle, you need to define these parameters in the system. Once you define these parameters, you need to associate them to the price items (i.e. Price Item X and Price Item Y) and then add these price items to the bundle (i.e. Bundle A).

While adding Price Item X to Bundle A, you need to set the following price item parameters:

  • Country - US

  • Currency - USD

Similarly, you need to add Product Y to Bundle A with Country set to Germany and Currency set to USD.

The following table lists the tiered pricing defined for Price Item X:

Tier Sequence Rate Tiering Criteria Price Item Price Item Parameters From To
10 3 Number of Transactions Bundle A 0 5000
20 2 Number of Transactions Bundle A 5000 10000
30 1 Number of Transactions Bundle A 10000

The following table lists the tiered pricing defined for Price Item Y:

Tier Sequence Rate Tiering Criteria Price Item Price Item Parameters From To
10 5 Number of Transactions Bundle A 0 5000
20 4 Number of Transactions Bundle A 5000

Now, when the user performs 5000 transactions (in USD) of Price Item Y in Germany, 6000 transactions (in USD) of Price Item X in US, the system creates two billable charges - one for Price Item X and another for Price Item Y. The system adds the transactions with the following combinations and then determines the range of each price item within which the total units (i.e. 11000) fall:

  • Price Item X, US, USD

  • Price Item Y, Germany, USD

In this case, the total units fall in the 10000 - Infinite range of Price Item X and the 5000 - Infinite range of Price Item Y, and therefore the system uses $1 and $4, respectively, as the rate for calculating charges (i.e. (5000*4)= 20000 and (6000*1)=6000).

You can also add a price item more than once in a phantom bundle with different set of parameters. For example:

Bundle A Country Currency
Price Item X US USD
Price Item X Germany USD
Price Item Y Germany USD
Price Item Y US USD

In this case, the system adds the transactions with the following combinations and then determines the range of each price item (i.e. Price Item X and Price Item Y) within which the total units fall:

  • Price Item X, US, USD

  • Price Item X, Germany, USD

  • Price Item Y, Germany, USD

  • Price Item Y, US, USD