Usage-based pricing
Usage-based pricing
Usage-based pricing
The options in usage-based pricing are endless, and we are proud to say we cover the most complex and exotic pricing structures out there.
Within the Solvimon platform there are various ways to price and configure pricing. The main way to configure usage-based pricing is with a pricing type, but pricing can also be diversified with included volume, changing the type to add-on, configuring a block size, or even to combine volume and create volume pooled pricings.
We offer all standard usage-based pricing types. We go into more detail on separate pages for the following pricing structures:
Percentage-based fees are similar to unit-based pricing, but it differs in the fact that the meter value is a monetary amount value instead of a number. The price is calculated as a percentage of the amount, instead of a unit-based fee.
Percentage based pricing has the same options for pricing such as a flat (percentage) fee, and progressive or top-tiered pricing structures. However, as it’s a calculation on top of the unit measurement, it also allows for minimum and maximum pricing calculations.
When using percentage-based pricing, you might want to price your customers with a minimum and/or a maximum amount. This extra pricing configuration is available for both flat and tiered percentage-based pricing configurations.
Read more about it here.
By default, pricings that you create are configured as ‘default’ pricing. It is also possible to change the type to ‘add-on’, which enables your team to not include that specific pricing in a subscription.
Read more about add-ons.
In some cases, usage metrics are combined to combine volumes of multiple products into one pricing configuration.
In the KYB industry, an example would be to combine volumes of ‘Authorized transactions’ and ‘Cleared transactions’ within one tiered pricing schema.
Read more about combining volumes here.
The Solvimon Platform also supports ‘non-billed’ pricing, which means the product. For example, when your company does not have any pricing for a default usage event but does have an exception (e.g. if the card type is Mastercard), you can configure the default pricing to be ‘non-billed’ and add a price rule for the meter property filter of card type = Mastercard.
Non-billed pricing is also not shown on the invoice of your customer.
All pricing models are used to charge customers based on their usage, but they differ in the way the pricing tiers are structured. They all can be useful options for businesses that want to offer flexible pricing to their customers. It is important to carefully consider which approach is most appropriate for your business and your customers’ needs.