In our last article, we talked about Price Ramps, Conditional Charge Types and Min/ Max Price and how they can be used to solve real-world use cases. In this article, we will talk about few more pricing concepts with real-world use cases.

Suppose we are offering Internet Data Services and we have below 3 monthly plans available for Data consumed.

Sr# Data used in GB/ Month Price/ Month
1 20 $25
2 40 $40
3 80 $70

Now if any customer exceeds above monthly limit then we have below additional pricing available for all above 3 plans.

Sr# Data used in GB Price/ GB of data
1 1-5 $1
2 6-20 $2
3 20+ $3

            This example is applicable to Wi-fi or Mobile Data Services. We can also have same kind of real world use cases as per below.

  • Mobile and Telephone Voice Services
  • Mobile SMS Services
  • Electricity and Gas Consumption
  • Bike and Car Rentals

We can implement all these kind of use cases using Usage and Overage Price in Apttus.

Usage and Overage Price

            Usage and Overage Price come into picture mostly in Subscription based services. They can be used to quote prices for an amount of services consumed during a period.

Usage Pricing can be divided into 2 types. Pre-paid and Postpaid. In pre-paid model, customer upfront pays for pre-set amount of services to be consumed while in postpaid model, customer pays after the consumption of services.

Overage Pricing is the pricing which is applicable to customer if in case it consumes more than pre-defined amount of services.

Usage and Overage Price are available as Charge Types. If they are applicable on any product then they will be displayed as separate Price List Items. If they are dependent on some parameters like Data, Minutes, SMS, Kilometers etc. then all these parameters can be defined in Price Dimensions. We can define price tiers for Usage and Overage Price in Price Matrix Entries.

In our use case, we need to create a Price List Item with Usage Price Charge Type. We also need to create a Price Dimension for Data consumed. With this Price Dimension, we can define all above Data used/ Month price tiers as Range into its Price Matrix Entries as per below.

Sequence Data used in GB Adjustment Type Adjustment Amount
1 20 List Price Override $25
2 40 List Price Override $40
3 80 List Price Override $70

We also need to create another Price List Item with Overage Price Charge Type and define price tiers as Usage into its Price Matrix Entries as per below.

Sequence From To Unit Price
1 1 5 $1
2 6 20 $2
3 21 999 $3

            This way we can handle the most common use cases of today’s world using Usage and Overage Price in Apttus. We will talk about more interesting Pricing Concepts in our next articles.