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Tiered pricing

Tiers are one of the levers available to broaden your modeling possibilities. They allow you to implement progressive pricing using different tiers and calculation models.
There are tiers:

  • with included quantities (free)
  • with billed quantities

Among the advanced pricing options, you can choose to implement tiered pricing or volume-based pricing.

1. An offer includes 2 licenses. For any additional licenses beyond 2, the price is €15 per month per unit.
Additional tiers can be created:

Tier Min Quantity Max Quantity Unit Price
1 2 5 €15
2 6 10 €12
3 Above 10 (No limit) €8

1st Tier - The addition of the 3rd, 4th, and 5th licenses will be billed at €15 per month per unit.
2nd Tier - The addition of the 6th, 7th, …, and 10th licenses will be billed at €12 per month per unit.
Last Tier - Any licenses added beyond 10 will be billed at €8 per month per unit.

  1. Tiered Pricing: For the addition of 12 licenses, the billed price will be: (3 * 15) + (5 * 12) + (2 * 8) = €121
  2. Volume-based Pricing: For the addition of 12 licenses, the billed price will be the price of the last tier reached: 12 * €8 = €96

In ProAbono, it is possible to define price calculation properties within a tier. This adds a new dimension to how features are billed.
Prices can be defined as:

  • Unit-based
  • Lot-based
  • Flat-rate per tier

2. An offer includes 2 licenses. For any additional licenses beyond 2, the licenses will be billed in different ways.

Tier Min Quantity Max Quantity Option 1 Unit Price Option 2 Price per lot of: Option 3 Flat-rate Price
1 2 10 €15 2 = €25 €99
2 11 26 €12 4 = €40 €149
3 Above 26 (No limit) €8 10 = €69 x

Option 1:
It is possible to use unit-based pricing:
1st Tier - The addition of the 3rd, 4th, …, 9th, and 10th licenses will be billed at €15 per month per unit.

  1. Tiered Pricing: For the addition of 36 licenses, the billed price will be: (8 * 15) + (16 * 12) + (10 * 8) = €392
  2. Volume-based Pricing: For the addition of 36 licenses, the billed price will be the price of the last tier reached: 36 * €8 = €288

Option 2:
It is also possible to imagine lot-based pricing:
1st Tier - Here, licenses are added in multiples of 2. The addition of the 3rd and 4th licenses will be billed at €25 per lot of 2.

  1. Tiered Pricing: For the addition of 36 licenses, the billed price will be: (4 lots * 25) + (4 lots * 40) + (1 lot * 69) = €329
  2. Volume-based Pricing: For the addition of 36 licenses, the billed price will be the price of the last tier reached: 4 lots * €69 = €276

Option 3:
Finally, it is also possible to implement a flat-rate pricing for the tier:
1st Tier - Regardless of how many licenses are added within this tier, the price of the tier will be billed at €99 per month.

  1. Tiered Pricing: For the addition of 24 licenses, the billed price will be: €99 + €149 = €248
  2. Volume-based Pricing: For the addition of 24 licenses, the billed price will be the price of the last tier reached: €149

In these examples, it can be observed that different pricing methods can be defined for each tier, providing flexibility in billing quantities