Types of Pricing

The system allows you to define the following types of pricing:

• Flat Pricing - Used when you want to charge a fixed price per unit to the customer.

• Tiered Pricing - Used when standard flat pricing is not sufficient to meet the business needs. Through tiered pricing, you can offer more favorable pricing to the customers based on service quantity utilization. For example, CG Limited uses wire transfer services provided by a large bank. If CG Limited initiates up to 1,000 wire transfers, the fee charged by the bank will be $5 per transfer. If CG Limited initiates more than 1,000 wire transfers, the fee will be $3 per transfer. To introduce this flexibility in the pricing model, the following tiered pricing is defined:

  Quantity Range	Rate ($) per transfer
  0 - 1000	5
  1000+	3

  You can define two types of tiered pricing:

  • Step Tiered Pricing - The rate of the first tiering range is used to calculate the charge for the maximum quantity in the range, and for incremental service quantity utilization, the rate of the progressive tiering range is used. This happens till the utilized quantity is exhausted. For example, when you define the following step tiered pricing for Price Item A and the user consumes 60,000 units of the same, the system will charge the first 45,000 units at $2 per unit and the remaining 15,000 units at $1 per unit:

    Quantity Range	Rate ($) per unit
    0 - 45000	2
    45000+	1

  • Threshold Tiered Pricing - The rate of the tiering range within which the service quantity utilization falls is used to calculate the charge for the entire volume. For example, when you define the following threshold tiered pricing for Price Item A and the user consumes 75,000 units of the same, the system will charge 75,000 units at $1 per unit as the service quantity utilization falls within 45000+ tiering range:

    Quantity Range	Rate ($) per unit
    0 - 45000	2
    45000+	1