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Defining product bundle pricing

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A product bundle is a product which is made up of multiple component products; for example an offering to a customer where a single package includes multiple channels. 

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Price Plans Business Example

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Scenario

Company ZX wants to set the rates for the following products, with the following billing requirements:

  • TV Subscription Start-up fee
    • Start up fee: €5
       

  • Installation Service Fee based on the duration, providing a Tiered Rate:

    • €20 per hour

      • 1 hour: €20 per hour
      • 2 - 5 hours: €15 per hour

      • 6- unlimited: €10 per hour
        i.e. 5 hours of repairs = (1*20)+(4*15) = €80
         

  • Repairs based on the duration, providing a Flat Rate:

    • €20 per hour
      • 1 hour: €20 per hour
      • 2 - 5 hours: €15 per hour

      • 6- unlimited: €10 per hour
        i.e. 5 hours of repairs = 5*15 = €75

  • Antennas based on the quantity, providing a Flat Rate:
    • Antennas
      • 1: €10
      • 2: €9
      • 3: €8
      • 4 - Unlimited: €7
        i.e., buying 3 antennas = 3* €8 =  €24
         
  • Decoders based on the quantity, providing a Tiered Rate:
    • Decoders
      • 1: €10
      • 2: €9
      • 3: €8
      • 4 - Unlimited: €7
        i.e. Buying 3 decoders = €10 + €9 + €8 = €27

  • VOD Service fee, based on the number of distributors that the Services are supplied to, providing a Flat Rate:

    • VOD Subscription Service
      • Only Main Distributor (i.e.,.1): €5
      • Main and Twin 1 Distributors (i.e. 2): €4
      • Main, Twin 1 & Twin 2 Distributors (i.e. 3) : €3
      • For any additional distributors (i.e. <= 4) : €2
         

  • PPV Service fee, based on the number of distributors that the Services are supplied to, providing a Tiered Rate:

    • VOD Subscription Service
      • Only Main Distributor (i.e.,1) : €5
      • Main and Twin 1 Distributors (i.e., 2): €4
      • Main, Twin 1 & Twin 2 Distributors (i.e., 3) : €3
      • For any additional distributors (i.e., <= 4) : €2
         

  • Gold Service Subscription, based on a monthly fee with a free three month trial period:

    • For the first three months, the Subscription will cost €0 per month
    • Starting from the fourth month the Subscription will cost €20 per month

Solution

Create the following Base Price Plan

  • Create the price plan
  • Once created add the rates into the plan
  • Check the table below and see the rate type and model that should be used to satisfy each requirement
Product NameProduct Rate TypeRate ModelBase AmountTiered PriceComments
    Tier LevelFromToTier Amount 
Start Up FeeExpenseFlat Rate€5    Tiered Rates not allowed for Rate Type: Expenses
         
RepairsOne Time ServiceFlat Rate, Duration Based€10     
    111€20 
    225€15 
    36Unlimited€10 
         
Installation Service FeeOne Time ServiceTiered Rate, Duration Based€20    

5 hours of repairs = (1*20)+(4*15) = 80

    111€20 
    225€15 
    36Unlimited€10 
 
AntennaPhysical GoodFlat Rate, Quantity Based€10    Buying 3 antennas = 3* €8 =  €24
    111€10 
    222€9 
    333€8 
    44Unlimited€7 
 
DecoderPhysical GoodTiered Rate, Quantity Based€10    Buying 3 decoders = €10 + €9 + €8 = €27
    111€10 
    222€9 
    333€8 
    44Unlimited€7 
 
GoldTermed ServiceTiered Rate, Maturity Based€20    Subscription billed for a year: (3*0) +(9*20) = €180
    1130 
    23Unlimited€20 
         
VOD ServiceTermed ServiceFlat Rate, Quantity Based€5    Service is distributed on 4 distributors = 4*2 =€8
    111€5 
    222€4 
    333€3 
    44Unlimited€2 
         
PPV ServiceTermed ServiceTiered Rate, Quantity Based€5    Service is distributed on 4 distributors = (1*5) + (1*4) + (1*3) + (1*2) = €14
    111€5 
    222€4 
    333€3 
    44Unlimited€2 
Note
titleNotes

 

Glossary  

CRM.COM TermDefinition
Usage ServicesServices that are provided upon customer request and are billed based on their usage.
SubscriptionA collection of customer services billed on a recurring, usage or one-time basis.
JobA small project initiated by the operator for customers, involving the delivery and billing of services, products and activities. Customer requests and orders, such as that for a new subscription, can be initiated and registered through a job.
ActivitySmall task or action that is either stand-alone or must be completed as part of a larger project.
ExpensesServices that are provided just once, usually upon customer request, and are billed just once.
Termed ServicesServices which are billed for a term and they cycle
Physical GoodsA tangible commodity which is provided to customers, such as cameras, decoders and magazines. Physical Goods can be traceable or not traceable.
One -time ServicesServices which are only provide once and billed based on their duration
Provisioning Distributors

Distributors are used to relate subscription services and subscription associated devices to a specific Provisioning Provider as well as define what services will be available from each device, if more than one device is available on a single subscription.

CRM.COM offers integration with several providers.

SegmentsLists of records in CRM.COM based on conditions that are defined using CRMQL (CRM.COM Query Language), a business query language developed by CRM.COM.
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