Happy Business Starts Here

Re: Quantity? based subscription or not

tamir
Tutor

Quantity? based subscription or not

I have a product catalog with one product (rateplan/charge flat)

What I am looking for is to setup a system which makes possible to purchase this product in particular quantity (which can change over time).

I can run billrun once a month and do not care about refunds - all prepaid, so no cancel with refund, only can add and remove the product from my subscriptions list

Here is an example:

 

Spoiler

On Monday customer purchase 50 of the product

On Tusday - 1000 of the product

On Wednesday - cancel 30 of the product

On Thursday - buy another 200000 of the product.

 

Obvious thing is to have a product quantity based, but there is a significant performance degrade when climbing to particual number of amendments.

Another way is to have regular subscriptions, just purchage each time number of those and remove some. The problem is performance again on large number of subscriptions. When we climb toward 10K for account, bill run and any operation become really slow

So not sure what route to take in order to setup such operation.

Thank you for ideas

6 REPLIES 6
Richard
Zuora Staff

Re: Quantity? based subscription or not

What is being sold here? Are these some kind of widget, like t-shirts or pre-paid minutes? Or a license for a service for a period of time like a week or a month? And what is mean by 'charge flat'? Do you mean 'flat fee' or 'per unit'?

tamir
Tutor

Re: Quantity? based subscription or not

This is service (license fee) . Per unit price. Customer can purchase and cancel service for units he has
tamir
Tutor

Re: Quantity? based subscription or not

I am reading now about Orders (which is new for me) and it looks like it might work in my case.

Can you, please, elaborate on the following scenario

Spoiler
Customer creates an order of N units of the product
During the month he adds and removes units from the order
The above happening every month

What would be the result of such scenario in case of prepaid and postpaid products?

Number of "units" is thousands. Operation can be done at any time on any number of units.

 

Thank you

 

Richard
Zuora Staff

Re: Quantity? based subscription or not

Sticking with your first use case, I don't think Orders isn't going to help, you'll end up with lots of orders with one order action instead of lots of amendments but you're going to end up running into the same issues as the volume of orders/amendments grows. 

 

I also still don't clearly understand your use case. If this is a service and I add 1000 on Tuesday and remove 30 on Wednesday were those 30 cancelled from the 50  purchased on Monday or the 1000 purchased on Tuesday? Are you seeking pro-ration for that period of Monday (or Tuesday) to Wednesday for those 30 units? What is the billing period? A Month?

tamir
Tutor

Re: Quantity? based subscription or not

Thank you for reponse.

Best case I would like to have prorated, but if this makes the solution much more complicated, I can stick with full month only.

Charge is always monthly.

To your question (let's assume those are all operations):

 

Monday: add 50

Tuesday: add 1000

Wednesday: remove 30

 

Acceptable:

At the end of the month i will pay for 1050

Next month i will pay for 1020

 

Best case:

At the end of the month i will pay for 1020 full month + 30 from the begining of month until the Wednesday I removed 30.

 

 

 

Richard
Zuora Staff

Re: Quantity? based subscription or not

So, as you are aware, for the best case solution you should be using update product amendments that change the quantity on the date specified:

  • Monday, create subscription set quantity to 50, invoice for 50 for a month.
  • Tuesday, update product amendment, set quantity to 1050.
  • Wednesday, update product amendment, set quantity to 1020.
  • A month from Monday, invoice for 1020. If you didn't invoice on Tuesday or Wednesday this invoice will also include proration charges for the Tuesday & Wednesday changes, or you might have invoiced back on Tuesday and Wednesday (our recommendation - get the money as soon as you can!!!).

In your original posting you expressed concern about having so many amendments bill performance will suffer. Which it will if you approach the documented limits, but I'd ask how often that will be the case. If you have 1000 subscriptions how many would be so volatile you could reasonably expect to approach the limit inside 12 months? I'm always wary of situations where the tail is wagging the dog, meaning while you might have a handful of subscriptions that do head up towards these limits, if the bulk don't, I'd stick with the update product amendment approach as you'll collect more money, quicker and accurately. For those subscriptions that do start to drag on performance, create a process (may be automated, may just be manual) where you clone the subscription, cancel the old one, and start the new one of the next billing day with the then current quantity. 

 

But if the alternative is true, you're herding cats and everyone's subscription is collecting 30 update product amendments a month (one update product amendment a day), then you probably have about a year's worth of use out of that subscription before you collect 300+ amendments and it may be worth duping the subscription as described earlier. If this is the case I'd automate the duping process mentioned earlier BUT STILL stick with the update product amendments process!

 

Please remember I'm not at all familiar with the dynamics of your business but you're paying for a platform that's quite scalable, is continuing to scale even more and is automatable meaning you can create automated processes to work around the issues you do come up against.