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How do I create a Product Rate Plan that requires minimum usage amount?

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Community Manager

Re: How do I create a Product Rate Plan that requires minimum usage amount?

Question or Problem Statement:

Our business model would require a minimum charge every month that should only be applied if the customer's usage is below the minimum. If it's above the minimum usage amount, then we will charge them another price per unit. For example, if the usage amount is below 1,000, then we will charge them $1,200. If the usage amount is above 1,000, we will charge them $0.8 per unit. 

How do I best set up my rate plan to apply this use case?

 

Solution:

I would suggest that you use Volume Pricing model. Where you could set the first tier to be a Flat Fee Price Format, if the usage records used fall into the first tier, then customer will be charged at this flat fee price of $1,000. Starting from the 2nd tier, you could specify the Price Format as Per Unit, meaning the customer will be charged at a per unit basis if their usage records exceed the 1st tier.

 

Supporting References:

You may also refer to Volume Pricing Charge Model in our Knowledge Center.

 



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