Defining Tiered Pricing
Tiered pricing is used to establish rates for future usage. There is no pricing until you know the future usage.
Here is an example: In a cell phone plan, you are quoted possibly a tiered plan of $/minute for various blocks of time that you agree to pay. At the end of the billing cycle, the carrier will use the tier to determine the actual rate to apply to the minutes consumed and present you the bill for payment. At the time of quoting, only the rate is established.
If you have defined price matrices, the tiered pricing for a product is inherited from there. If you make any adjustments on the line item that has a tiered rate defined, the adjustments apply to the tiered rate and also affect the price matrices.
Note: You cannot create ramps and tiers both for an option.
- Select a product on the options/configuration page. The tiers table appears below the selected product.
- Type a mandatory Tier Start Value and Tier End Value. Ensure that the start and end values do not overlap. For example, the range must be 0-100, 101-200, and so on.
- Type a mandatory Usage Rate.
- To add more tier lines, click the or icon, and select Add.
