Pricing Models

This topic applies to

Applies to

SuiteCommerce | SuiteCommerce Advanced

Pricing models allow you to structure pricing based on the number of items sold.

Regardless of the pricing model configured in the price plan, commerce web stores calculate and display the total on the page.

SuiteBilling subscriptions provide two pricing models:

  • Tiered Pricing

  • Volume Pricing

The differences in the two pricing models are described below. The examples use the same number of items being purchased to illustrate how each of these two models results in different total customer cost.

Tiered Pricing

With tiered pricing, each item is billed according to its price tier regardless of the total number of items sold. Do not mix different types of tiers on the same subscription line. The subscription line details page only displays the minimum of the first tier and the maximum of the last tier. The subscription line summary displays intermediate tiers. Best practice is to not set a minimum or maximum on intermediate tiers.

Tiered Pricing Example

Item Count

Cost per Item in This Tier

Tier 1

1 - 10

$3.00

Tier 2

11 - 20

$2.80

Tier 3

Over 20

$2.50

In this example, the account is set up with three pricing tiers and the customer is purchasing 40 items.

  • The first 10 items are in tier 1 and are charged at the tier 1 rate of $3.00 each.

  • The second 10 items (items 11 through 20) are in tier 2 and are charged at the tier 2 rate of $2.80 each.

  • The remaining 20 items (items 21 through 40) are in tier 3 and are charged at the tier 3 rate of $2.50 each.

Results:

In this example, the total net revenue impact for the 40 items is:

  • 10 items at $3.00/each = $30.00

  • 10 items at $2.80/each = $28.00

  • 20 items at $2.50/each = $50.00

  • Total of all items = $108.00

Volume Pricing

With volume pricing, the entire number of items are billed at the same price based on the number of items being ordered. Minimum and maximums do not display for fixed subscription lines. Best practice is to not set minimums or maximums on fixed subscription lines.

Volume Pricing Example

Items Ordered

Cost per item at this volume level

Volume Level 1

1 - 10

$3.00

Volume Level 2

11 - 20

$2.80

Volume Level 3

Over 20

$2.50

In this example, three volume pricing levels are used and the customer is purchasing 40 items.

Results:

  • All items are charged at the $2.50/each rate.

  • Total of all items: $100.00.