Pricing formulas
Pricing formulas determine how the price is calculated and displayed on an invoice or receipt.
Rebilly supports five types of pricing: fixed-fee per time period, flat rate per unit, stair-step, tiered, and volume. For information on how to apply a pricing formula, see Create a product and pricing plan.
Fixed-fee per period
Use this formula for subscriptions that involve the same price, number of units, and reoccur over a fixed period of time, such as every: day, week, month, year, or number of years.
For example, a streaming company charges customers $13.99 each month for subscription period that is 6 months in duration. The quantity of movies that a customer streams each month does not impact the price.
Formula: unit quantity of 1 x price per fixed time period x number of time periods = final price.
Flat rate per unit
Use this formula to charge a flat fee per unit. For example, $0.10 per transaction or $4 per unit.
Formula: unit quantity x price per unit = final price.
Stair-step
Use this formula to charge for units that are sold in specific quantities.
For example, a company sells units in two specific quantities — in quantities of 12, and 6 units. In this scenario, a customer can only buy units in quantities of 12, or 6 units.
Formula: price per specific quantity = final price.
Tiered
Use this formula to charge for units that are sold within defined quantity ranges, or tiers.
For example, a software company charges $15 per user, for a basic plan which provides 0 to 3 user licenses. If a customer adds one more user, the fee for this user is $20, because this new user exceeds the range of the basic plan. Additionally, if the customer adds a total of 6 or more users, the fee for the sixth user, and each user after that point, is $25.
| Price per user | Tiers |
|---|---|
| $15 | 0 to 3 |
| $20 | 4 to 5 |
| $25 | 6 or more |
If a customer buys 6 user licenses on the tiered pricing plan, the pricing is as follows:
- User #1: $15
- User #2: $15
- User #3: $15
- User #4: $20
- User #5: $20
- User #6: $25
Total cost: $110.
Formula: (price for the tier x quantity within the tier) + (price for next tier x quantity in next tier) + ... = final price.
Volume
Use this formula to charge for units that are sold in bulk, or volume ranges. In general, this formula means that a customer pays less per unit when they buy a large volume of units.
For example, based on the table below, if a customer buys 6 units, they pay $3 per unit. If a customer buys 1 unit, they pay $5.
| Price per unit | Quantity range |
|---|---|
| $5 | 0 to 1 |
| $4 | 2 to 5 |
| $3 | 6 or more |
- Unit #1: $3
- Unit #2: $3
- Unit #3: $3
- Unit #4: $3
- Unit #5: $3
- Unit #6: $3
Total cost: $18.
Formula: price per quantity range x number of units = final price.