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

[Katherine]

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

[Katherine · Accepted solution]

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:

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