How to create a volume pricing based pricing model

This billing model charges a certain fixed amount and extra for add-ons. The company offers different price packages where volume is the key differentiator. With quantity based billing once customers fill up a tier, they move to the next tier and start charging a different price.

Example

• A SaaS company charges a fixed 1,000 € for the first 10 hours per month of support work and 90 € per hour for exceeding hours.

Create a fixed recurring fee

As a first step create a new order and add a fixed recurring fee and rates as follows:

1. Go to Sales order
2. Create a new sales order
3. Add a customer and project
4. Add a new order item
5. Select a product e.g. “Support work” and update the unit price (e.g. 1 000 €), billing type “Fixed”, an invoice period “One-month last day postpaid” and an automated invoicing e.g. ”Automatic revenue items and prices” if needed
6. Click Save

Create a volume based recurring fee

As a second step add another order item as follows:

1. Add a new order item
2. Select a product (e.g. “Support work”)
3. Update the unit price, billing type “Category-based volume price”, an invoice period “One-month last day postpaid” and an automated invoicing e.g. ”Automatic revenue items and prices” if needed
4. Go to the Volume pricing section
5. Add a new price item
6. Set a max limit e.g. “10 h”, the max price “No” and unit price “0 €”
7. Add another price item
8. Set the max price “Yes” and the unit price e.g. “90 €”
9. Click Save

Note: Currently supported monthly based volume pricing model only.