Step pricing

Concepts

Step pricing is a model where the cost remains constant across specific usage ranges and then "jumps" to a higher flat fee once a threshold is crossed. Unlike per-unit or tiered models where every additional unit adds to the cost, step pricing treats usage as a series of flat-fee plateaus.

The logic of dimensions

Step pricing is a 1-dimensional model. It depends on one factor: quantity ().

Think of this as "The plateau." Imagine you are renting a moving truck. Whether you drive 1 mile or 50 miles, the price is exactly $40. As soon as you hit 51 miles, the price jumps to $80 and stays there until you hit the next limit. Your cost doesn't climb a slope; it rests on a flat plateau until you are forced to step up to the next level.

SaaS example: Cloud log storage

A monitoring platform offers storage in fixed "service tiers." Each tier provides a wide capacity range for a single fixed price.

The "Plateau" calculation: Zenskar identifies which range the total quantity falls into and applies the corresponding flat fee. The individual units within that range do not have a per-unit cost.

Get Started

Create a step-priced product

1. Navigate to the Library: Go to Contracts > Products.
2. Create a Standalone Product: Click + CREATE NEW and choose Standalone Product from the dropdown. The Create Standalone Product page will appear. Fill in the required details and click Save & Proceed at the bottom right.
3. Open Price Details: You will be redirected to the Price Details page. Click + Add Price to configure pricing for the product.
4. Select Step Pricing Model: In the Pricing Model dropdown, select Step Pricing.
5. Configure Tiers and Save: Click + Add Tier to create pricing brackets. Define the from and to ranges and enter the price for each tier. Continue adding tiers as needed. Once complete, click Confirm, then click Done on the Price Details page to finalize the setup.

How-to: Add step pricing to a contract

1. Via Contracts

1. Open the target contract in Contracts > Contracts.
2. In the Summary tab, click + ADD PRODUCT V3.
3. Search for and select your configured step pricing product.
4. Click ADD PRODUCT. You will be redirected to the Summary page. Click Publish.

Via Customer

1. Open the target customer in Customers.
2. Go to Contracts and click + CREATE CONTRACT.
3. In the Summary tab, click + ADD PRODUCT V3.
4. Search for and select your configured step pricing product
5. Click ADD PRODUCT. You will be redirected to the Summary page. Click Publish.

Reference

Technical specifications

Comparison of bracket-based models

System architecture

In Zenskar, all pricing models are governed by a hierarchical relationship between entities:

• Contract: The legal agreement between you and your customer.
• Phase: A specific time-bound period (e.g., Q1, implementation phase) within that contract.
• Product: The actual service or software module being sold.
• Pricing model: The specific logic (step pricing) that defines how that product is billed.

Entity hierarchy:

flowchart LR
    CONTRACT[Contract] ---|"has one or more"| PHASE[Phase]
    PHASE ---|"has one or more"| PRODUCT[Product]
    PRODUCT ---|"has exactly one active"| PRICINGMODEL[Pricing model]

style PRICINGMODEL fill:#90ee90

Price resolution flow

The following flow describes how step pricing calculates the final price:

1. Product library: Defines the various usage ranges and their respective flat fees (cᵢ).
2. Contract: Links the product to a customer and defines the quantity source (q).
3. Data source: Provides the value of from a meter or product field.
4. Billing engine: Locates the single plateau (i) where q resides and injects the constant fee cᵢ into the invoice.