Pricing models

Licensed

Licensed (or flat fee) pricing means that your customer pays a predetermined fixed price regardless of usage or time duration. A flat fee priced product provides predictability for you and your customer, as it is clear how much is expected to be charged and when.

Usage-based

Usage-based pricing allows you to charge the customer based on their consumption of your product/service. You simply provide access to the service and bill your customers based on what they used.

Per unit

The simplest form of metered pricing is where the amount per unit is the same regardless of how many units the customer consumes. The total amount is determined by calculating unit_price x quantity.

Tiered

Prices can also be represented in tiers, allowing the unit cost to change with quantity or usage. This allows for more flexibility than static unit prices.

Example use case

Consider you want to offer lower rates to your customers who consume a lot of your service per period. With tiered pricing you can set-up either volume-based or graduated pricing accordingly: