Tiered pricing

Tiered pricing is a pricing strategy where the cost of a service or product is set at different levels, or tiers, based on a single factor such as quantity, quality, features, or customer segments.

How to add a product based on tiered pricing in Zenskar

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Important

Refer the products documentation to learn more about the concept of products in Zenskar.

Step 1: Create a product based on tiered pricing

1. Navigate to Contracts > Products, and click on the ADD PRODUCT button.
2. Select the Tiered Pricing from the drop-down.
3. Select or deselect Metered:
   1. If the service or product is metered, select the appropriate usage aggregate from the drop-down.
   2. If the service or product is not metered, enter the quantity.
4. Fill in all other details, and select all the desired features.
5. Save the product.

Example: metered product

Details:

• Computing resources are being sold at:

• Owing to the nature of consumption, this is a metered product.
• The usage aggregate named Compute is being used to fetch consumption details for a given billing period.

Example: non-metered product

Details:

• Cereals are being sold at:

• 500 units are being sold.
• This is a non-metered product.

Difference between volume and tiered pricing

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Volume versus tiered pricing

Let us assume:

• you are in the business of selling software licenses
• you are selling 250 licenses to a particular customer

Number of licenses	Price per unit in USD
1-100	100
101-200	90
201-∞	80

Comparing the total cost of 250 licenses in both the models:

Number of licenses	Tiered pricing	Volume pricing
1-100	100 * 100
101-200	100 * 90
201-250	50 * 80	250 * 80
Total	23000	20000