Overview of Subscription Pricing
You must first set up the pricing strategy for the subscription.
The pricing strategy of the subscription is then retrieved when you enter the Business Unit, Legal Entity, Number, and Primary Party during subscription creation. When lines are added, the pricing information is retrieved automatically.
Here are the different pricing strategies:
|
Pricing Strategy |
Description |
|---|---|
|
Flexible Pricing Plan |
Used for recurring and usage charges for a single SKU. |
|
Tiered Pricing |
Vary the unit price or discount based on the quantity or usage quantity. |
|
Automatic Price Adjustments |
Set up promotions and discounts on one or more charges of a SKU. |
|
Manual Price Adjustments |
Change the price manually on a subscription |
|
Coverage Pricing |
Price a support plan based on the assets and products it covers. |
|
Anniversary Pricing |
Periodic price increase on a termed or evergreen subscription. |
Flexible Price Plan
Use this pricing strategy for subscriptions that use one-time charges, recurring charges, or usage-based charges. You have the flexibility to use the list price or net price as the pricing plan on which to calculate price adjustments.
Tiered Pricing
Use this pricing strategy for subscriptions that use quantity or amount based tiers for price lists. You can:
-
Evaluate tiers for a subscription charge.
-
Apply rules for different tiers.
-
Apply discount percent, discount amount, markup percent, markup amount, or price override.
Automatic Price Adjustments
Use this pricing strategy in subscriptions that use discount rules at multiple levels, such as simple, tiered, and attribute based.
Manual Price Adjustments
Use this pricing strategy for subscriptions where the pricing administrator controls the price list. You can apply multiple discretionary discounts on the net price or list price.
Coverage Pricing
Use this pricing strategy for subscriptions where customers can purchase a support plan to cover services for a product or asset for a given period, for example, extended warranty for a laptop, car repair, or appliance services.
Anniversary Pricing
Use this pricing strategy for subscriptions where the planned pricing changes over time. For example, you can offer an introductory price for your customer for a lower entry price and then gradually increase it.