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Setup Tiered Pricing

Tiered Pricing allows you to apply specific per user pricing based on count ranges. For example, you can bill 14 users with the first 10 users @ at $200/user and the next 4 users at $150/user for $2,600 total.

In order to achieve tiered pricing, ConnectActive will automatically update the Addition's Unit Price and Cost values. In addition, ConnectActive will add the pricing schedule rules that were applied to the invoice description. (example below)

ConnectActive Tiered Pricing will also handle prorating and prorating refunds based on the schedule rule applied to the increase/decrease in user count. (example below)

 

Invoice Options

Tiered Pricing in ConnectActive is not based on volume discounts (for example, if over 100 units, apply 10% discount to whole order) but rather stacked pricing based on ranges.

  1. You can create and edit Tiered Pricing Schedules using the "Tiered Pricing" tab on the ConnectActive main page or while editing an Agreement Addition Mapping in ConnectActive.
  2. To apply a pricing schedule, edit the Agreement Addition Mapping in ConnectActive and under its "Pricing Method", select the Tiered Pricing Schedule you would like to apply to the Agreement Addition.

Price Per User
When Price Per User is used for a range, then each user within that range will be billed at the range's per user pricing.
Example: Users 11 to 20 will be charged at the $200 per user rate.

Flat Rate for Range
When Flat Rate for Range is used, then the price for the range remains constant.
Example: Any user count between 1 and 20 will be charged a minimum of $4,000.

 

Pricing Schedule Example

Pricing Schedule
Start End Price Cost Rule
1 5 1,500 1,000 Flat Rate
6 10 250 150 Per User
11 20 200 100 Per User
21 40 175 90 Per User
41  ∞ 150 75 Per User
  1. The first rule will apply $1,000 to the agreement addition if the user count is found to be one or more.
  2. The second rule will apply to all users that are in the 6 to 10 range. This will be added to the subtotal from the first rule.
  3. The third rule will apply to all users that are in the 11 to 20 range. This will be added to the subtotals from the first rule and second rule, etc.
Example using a User Count of 4
Only the first rule will apply and the addition will be billed at $1,000 (Flat Rate).
Example using a User Count of 7
The first rule will apply with a subtotal of $1,000 (Flat Rate)
The second rule will apply with a subtotal of $500 (2 x $250 per user)
The addition will be billed at a total of $1,500
Example using a User Count of 15
The first rule will apply with a subtotal of $1,000 (Flat Rate)
The second rule will apply with a subtotal of $1,250 (5 x $250 per user)
The second rule will apply with a subtotal of $1,000 (5 x $200 per user)
The addition will be billed at a total of $3,250

Invoicing Example

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Prorating Example

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