Upodi provides support for various monetization models. A monetization model consists of a pricing model and a charge type.
- Flat fee
- Per unit
- Tiered pricing
- Volume pricing
The following outlines the different use.
Please be aware
Due to support of underlying finance systems (ERP), Upodi will handle all decimals when calculating tier and volume pricing, by supplementing quantity with 1 x the calculated price and adding the full quantity of this to the invoice line. ERP systems often calculate pricing of amount x quantity price, rendering the full amount wrong if decimals becomes larger than 2.
A flat fee pricing model bills a subscription a fixed amount in the term of the subscription. Flat fee pricing models ignore the quantity of the subscription charge, however, a subscription charge quantity of 0 will ignore the fee in a billing cycle.
Flat fee pricing models are usually used for sign-up fees, cancellation fees and based level subscription fees.
A per-unit pricing model, multiplies the per-unit amount with the quantity of a subscription charge. The following formula is used
quantity * per-unit price
Per unit fees are often used in SaaS subscription plans (per user) or mobile data plans (per gb data).
A tiered pricing model offers a flexible billing based on the quantity amount of a subscription. A tiered pricing model is calculated based on the quantity tier and type of that tier multiplying each tier of the full quantity.
Each tier can be charged by per-unit pricing level (see above), or a Flat fee level (see above).
A tiered pricing model is calculated by the sum of all tiers matching the volume. Let's try to define this by looking at a sample table.
$20 per unit
$15 per unit
$10 per unit
A tiered pricing model for a quantity of 130, will sample calculation of tier A plus tier B but not tier C. The calculation is done as follows:
Tier A = 100 * $20 (per unit) = $2.000 + Tier B = 30 (remainder) * $15 = $450 ================ Totals = $2.450
The output of a tiered pricing is multiple lines applied to the same invoice to illustrate each tier that matches the quantity.
A volume pricing is often called a "discount ladder". A volume pricing models looks for a given tier of the volume pricing model, and calculates the total quantity of this tier.
Using the sample table from above (tiered pricing), a volume pricing model, calculated with a quantity of 130, is done as follows. 130 matches tier B:
Tier B = 130 * $15 = $1.950 ================ Totals = $1.950
The output of a volume pricing is a sinlge line of the tier that match the quantity. Please be advised that the quantity is stored within Upodi in both the quantity field (being the input quantity), and the internal quantity field (being 1 for flat fee or the quantity on a per unit).
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Updated 7 months ago