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Savvy Scholar

Renewals for Tier pricing

Hi

  I have a product configured with Tier pricing with discounts captured at each tier level.

 

1-49  100$

50-99  90$

100-249 80$

 

I have product rate plan charged configured as 'Use Latest product catalog pricing'. Now, for quantity 40 during initial subscription creation, customer pays 100$. During the renewal, customer adds 10 more quantity which falls in discount price of 90$. How does Zuora handle this scenario of having renewal trigger at 90$ price instead of 100$ as per the original subscription.

 

Thanks !

 

1 REPLY 1
Zuora Staff

Re: Renewals for Tier pricing

The change in quantity and when that takes effect is the only thing that will drive the price change. Let's say the subscription renews on Jan 1 2019. If the customer wants to renew and change the quantity to 50 as part of the renewal you'll have a renweal amendment and an update product amendment that's changing the quantity to 50. In this example if that update product amendment takes effect (has a contract effective date) of Jan 1 2019 than beginning Jan 1 2019 the $90 price will be in effect. 

 

The 'Use Latest product catalog pricing' setting relates to automatic price changes upon renewal regardless of quantity, meaning if you'd changed that price table from the last renewal and the customer renewed and didn't change any quantities they'd still pick up the new pricing for their existing quantity.

 

There's a subtle difference here which I hope I've explained, but please let me know if this is still confusing.