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Zuora Staff

When should I add a new Product vs. Rate Plan?

 

Question: I’m modifying my Product Catalog - when should I add a new Product vs. Rate Plan?

 

1 REPLY 1
Zuora Staff

Re: When should I add a new Product vs. Rate Plan?

Solution:

 

Before we dive into some if/then scenarios, let’s review the components of Zuora’s Product Catalog.

 

Product Catalog: where you define your products and pricing.  Each company has one product catalog that contains all the products that they sell. 

  • Defines the billing behavior you want for the products or services you sell
  • Each product in the product catalog represents a product or service

 

Within Zuora’s Product Catalog consists 3 tiers for billing:

 

Product: the item or service available for purchase

  • Products capture your offerings and help with reporting
  • Products in Zuora are often ‘services’ that people or companies subscribe to

 

Rate Plan: the billing frequency and price points available

  • Rate Plans define what a customer can purchase

 

Rate Plan Charge:  the charges or fees for each rate plan

 

Example Set-Up:

 

PC Ex.png

 

Considerations when Modifying your Product Catalog

 

SCENARIO 1

 

If you are…. Continuing to offer the same service at a new price point or price model

 

Then… Add another Rate Plan

 

Billing Considerations: use appropriate billing frequency and price model, as needed (e.g., flat fee instead of per unit)

 

SCENARIO 2

 

If you are… Creating an add-on to an existing product that not everyone will buy

 

Then… Add a new Product

 

Billing Considerations: align the rate plans to the existing product

 

SCENARIO 3

 

If you are… Making an existing product available at a discount for a period

 

Then… Add a New Rate Plan

 

Billing Considerations: Zuora’s discount charge model allows you to specify the discount and duration