What are pricing models available for plans, addons & charges in Chargebee?

Modified on: Thu, 31 Aug, 2023 at 10:53 PM

Scope

Types of pricing model available for plans?

What are the types of pricing models available for add-ons?

Does the charge or non-recurring add-on have pricing models?


Summary

Pricing Models

The price of the plan is set according to the pricing model chosen for the Plan, addons, and charges (non-recurring addons). The pricing model can be one of the following:

1. Flat Fee

2. Per Unit

3. Tiered

4. Volume

5. Stairstep



Solution

  • Flat fee: This is for plans that have a fixed recurring charge. There is no quantity associated with such plans.
  • Per Unit: You may choose to sell services that are billed based on the quantity signed-up for. For instance, you may be offering a SaaS product for $29 per user per month. The quantity here would be the number of users. The customer can specify the plan quantity during sign-up through the hosted pages or – if you are using API – then you may use the Create Subscription API call.
  • Tiered: In tiered pricing also, the per-unit prices are assigned to quantity-based ranges (tiers). When calculating the total price, quantities are purchased from successive tiers, starting from the lowest.
  • Volume: Here too, the price is quantity-based. However, the per-unit price is dependent on the range within which the total quantity falls. So under this model, you would define the quantity ranges and the per-unit price for each.
  • Stairstep: Stairstep pricing also defines quantity tiers against which prices are defined, but for each tier, a flat price is assigned instead of a per-unit price.



Similarly, you can create/update the pricing models via API for PC 2.0 using Item Price attributes and for PC 1.0 using Plan attributes.


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