Product Documentation

Description

A Consumption feature allows you to value the usage of a service over a defined period.
In other words, each usage is counted throughout the period, then valued based on the pricing, and finally billed.
It models a counter for SMS, call hours, or any quantity associated with a service.

The Consumption feature is particularly useful for the “Pay as you go” model.

With a Consumption feature, you can:

• Make the Consumption feature payable or non-payable
  • If payable, you can define:
    • the quantity included in the subscription offer. If the current quantity is not greater than the included quantity, nothing will be billed.
    • the pricing for this feature.
  • If free, you can indicate a limited quantity or no limit.
• Specify an initial quantity
• Allow or restrict the customer’s freedom to increase/decrease the counter
  In the hosted pages (subscription funnel and customer portal), the customer may have the option to modify the features themselves.
• No prorating
  Prorated billing does not apply to this feature. The final billed price will depend on the consumed quantity.

Examples:

Your offer provides the ability to send SMS alerts and other notifications. The first 25 SMS are included (offered). Then, from 26 to 100 SMS, each sent SMS is valued at €0.10 per unit. Finally, from the 101st SMS onwards, the price becomes €0.07 per unit.

If your customer sends 75 SMS during the first month, then during the next billing, this consumption will be billed as follows:

25 gratuits            =  0,00 €
50 SMS à 0,10 €        =  5,00 €
Total                  =  5,00 €

If your customer sends 145 SMS during the following period, then this consumption will be billed as follows:

25 gratuits           =  0,00 €
75 à 0,10 €           =  7,50 €
45 à 0,07 €           =  3,15 €
Total                 = 10,65 €

For more examples and information, click the link to access the article on tiered pricing.