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Overview
Price plans are the set of rates at which a company offers goods and services. The plans are used by the billing engine to charge customer accounts receivables for purchases.
Every billable product that is added to a subscription, job or activity must belong to at least one price plan, with the exception of usage services whose rates are defined in Usage Service Catalogs.
Price plans functionality
- Suitable for promotions and discounting; Price plans can be subject to conditions that result in special rates (such as discounts for employees).
- Ideal for making price reductions; rates that are lower than the base rate can be defined for a specific period or purchase quantity.
- Simplify overall price adjustments when tax rates change.
Setting Up Price Plans
Price plan rate models
The classification of each product determines the rate models available when adding a product to a plan. Billing handles each model differently.
Products are classified as:
- Expenses
- Termed services
- One-time services
- Physical goods.
Rate Model | Application | Intended for Classifications | Calculation Logic | Example |
|---|---|---|---|---|
| Flat Rate | A single fixed price. | Expenses | Price = Base rate | A €20 setup fee |
Flat Rate, Quantity Based
| A single fixed price based on purchased quantity, starting from a base rate, and adjusted as the quantity increases according to preset tiers. The purchased quantity of termed services depends on the number of service distributors. I.e., if the same channel is available from two different boxes, the quantity of the services is two. | Termed services, physical goods |
| A channel is accessible through several TV decoders (in different rooms). If the price for accessing the channel is €10 from one TV decoder and €8 from two or more, then:
|
| Flat Rate, Duration Based | A single fixed price based on the duration of the service, starting from a base rate, and adjusted as the duration of the service provided increases, according to preset tiers. | One-time services |
| An installation service is billed €10 for the first hour and €8 for each consecutive hour.
|
Tiered Rate, Quantity Based | A price starting from a base rate, which can be progressively adjusted as the quantity increases, according to preset tiers. Each tier defines a quantity range and the rate for the product within that range. | Termed services, physical goods
|
| The price of an antenna is €10 for one and €8 for two or more.
|
| Tiered Rate, Duration Based | A price starting from a base rate, which can be progressively adjusted as the duration required to provide the service increases, according to preset tiers. Each tier defines a duration range and the rate for the product within that range. | One-time services |
| An installation service is billed €10 for the first hour and €8 for each consecutive hour.
|
Tiered Rate, Maturity Based | A price starting from a base rate, which can be progressively adjusted as the subscription matures, according to preset tiers. Each tier defines a period and the rate for the product in that period. | Termed services |
| A channel is free for the first month, €10 for the second and third month, and €20 for each consecutive month until the binding end.
|
| Flat Rate, Maturity Based | A price which changes according to the rated period, using a price table made up of multiple flat rates. (I.e. Prepaid: pre-rate period, Normal - billable period)
| Termed services |
| A channel costs €10 when billed for 1 month, €50 when billed for 6 months and €90 when billed for a year.
|
Flat Rate, Maturity & Quantity Based
| A combination of flat rate maturity and quantity. | Termed services |
| A channel is accessible through several TV decoders (in different rooms). If channel access is free for the first month, and '€10 a month for one TV decoder' or '€8 a month for two or more decoders' for the second month onward:
|
Tiered Rate, Maturity & Quantity Based
| A combination of tiered rate maturity and quantity. | Termed services |
| A channel is accessible through several TV decoders (in different rooms). If channel access is free for the first month, and '€10 a month for one TV decoder' or '€8 a month for two or more decoders' for the second month onward:
|
Price plan fields
The table describes the sections of the Price Plans Data Entry page and explains how the fields on the page are used.
Mandatory
Configurable
| Main Information | |
|---|---|
Version: Reflect price changes in specific periods for the same price plan. Type: 'Base' or 'Conditional', selected by the system when creating the price plan. The value is 'Conditional' if a price plan is defined in the base price plan field.
Conditional price plans consist of a different set of rates (usually discounted) for the same products defined in a base price plan. These conditional rates are used for billing (instead of the base rates) provided the conditions defined in the plan are met. For example, customers are billed the conditional discounted rate, as long as their account receivable satisfies the defined requirement of VIP classification. Accounts Receivable: The corporate customer account for which the price plan is used according to the pricing agreement. | |
Rates Including information on the type and classification of the rated product | |
Rates are grouped by (and can be filtered on) product classification. Products are classified as:
UOT: The unit of measurement of the period during which the base or tiered amounts are applied, for termed and one-time services. Although the system can convert a monthly rate into a daily one, it is recommended that businesses that bill on a daily basis select a daily UOT. This produces more precise results than subsequently converting a monthly rate into a daily one. Currency in which the price plan's base rate is specified for the plan and product (cannot be the same as the system currency defined in 'Global Settings'). If multi-country network is enabled in 'General Settings', then additional rates in other currencies can be specified. Same product can be defined multiple times as long as it is in a different currency. A UOT must also be defined for termed services. A fixed rate can be defined to apply for a specific period, e.g., 30 days, 3 weeks, 2 months, 1 year. The following values can be set depending on the selected UOT:
Effective Starting From (applicable for tiered rates of termed services): the date on which the rating period is considered to start again. The options are:
Effective Starting From Example If 'Binding Start Date' is selected and you have a maturity model with 2 tiers, with tier 1 starting from the 1st month, then when the binding of a subscription is renewed, the rating will consider that the service is back to the 1st tier, even if it was activated 1 year ago. Tax Model: Define whether the base and tiered rates of the specified price plan are tax inclusive. By default, the tax model of the price plan is that which is defined in Tax Definition.
| |
| Tiered Rates | Used to define a rate other than the base, for a particular period or quantity, depending on the selected rate model. Refer to the Rate Model Table for information on the application of tiered rates. Level: A number that determines the order in which levels are considered. From and To are the inclusive integer values that determine the range of each tier level (expressed in the defined UOT) One of the following can be defined for the 'To' field value:
The unit for the From and To values may differ, subject to the selected rate model and UOT.
Amount: The rate applied to the tier level. |
Selection Conditions (For conditional plans only) | |
Conditions that are used to validate whether the price plan can be selected for a subscription or a job. | |
Validity Conditions (For conditional plans only) | |
| Conditions that are used to determine if the price plan rates can be applied during billing. Billing will revert to the respective base price plan rates if any condition in the conditional price plan is breached. | |
Additional Price Plan Rates (Base rates in currencies other than the system default) | |
The rates of each price plan can be specified in as many currencies as necessary, but each additional rate can be specified only once per price plan and currency.
The price plan rate includes the price plan and product information. So for each rate, multiple additional rates can be specified as long as they are in a different currency.
| |
Additional Price Plan Tiered Rates | |
The rates of each price plan can be specified in as many currencies as necessary, but each additional rate can be specified only once per price plan and currency.
The price plan rate includes the price plan and product information. So for each rate, multiple additional rates can be specified as long as they are in a different currency.
Currency for which the tiered rate is specified. | |
| Allowed Organisational Units | |
| Organisational units that are authorized to select and assign the price plan on billing term schemes, subscriptions, and jobs. | |
Related configuration areas
Mandatory modules must be configured for the Price Plan module to work.
Optional modules may be configured for the module to operate at its full capacity.
| Manual Link | Area | Description | Configuration |
|---|---|---|---|
| Products | Product Types and Products | Products must be configured before they are rated. New products can be added to existing price plans from the Product page. | Mandatory |
| Platform | VAT and other Tax Rates | VAT and other tax rates that will apply for the products added to the price plans. Through the tax rates area, it is possible to define whether or not the price plan rates include taxes. | Optional |
Using Price Plans
Validations take place before an action is initiated (prerequisite) or after it is submitted (postcondition).
Several 'Effective' price plans can be present in the system. A price plan is selected when a subscription or job is created, reflecting the terms of agreement of the customer.
If available, conditional price plans can be selected by users subject to 'Selection Conditions'. Whether the selected plan is used during billing depends on the 'Validity Conditions' of the price plan.
Selecting and creating a price plan
Specify the criteria that match the price plan you are interested in or use NEW from the Actions menu to create a new plan. Provide the information defined as mandatory in the price plan fields table and SAVE the plan.
Modifying a price plan
Use EDIT from the Actions menu to edit price plans that have been created but not yet added to a subscription or job. You can add, remove or edit product rates and information already defined in a plan. Use the respective actions to add new product rates or amend price plans that are already in use by subscriptions or jobs.
Amending existing price plan rates
As a general rule, price plans that are already in use cannot be modified, as the company and customer agreed on the plan rates when the subscription or job was created.
In exceptional cases it is possible to amend a plan, for example, to reflect a change in VAT or in rates across all contracts. When a price plan is updated, a new version of the plan is created including the previously defined products and rates.
Customers with updated price plans will be billed using the new rates (by default).
The user can also, through billing term schemes, define that customers are charged with the previous rates, until the binding end date.
- Find the price plan to amend and from its Data Entry page, click Replace in the Actions menu to open the Replace Price Plan modal.
- Define the New Price Plan's Effective Date.
- Input the percentage by which all price plan rates should be adjusted under Adjust Rates by '%', or leave the field empty for individual updates.
Use a positive or negative number to increase and decrease rates, respectively.
- Click on SAVE to close the modal.
- Once a new price plan version is created including the products and rates from the previous plan, click on edit and update price plan rates.
Calculating and applying a discount to rates
As long as a price plan is not already in use, it is possible to provide a discount on defined base and tiered rates. When adding new or editing existing product rates, use Calculate Amount to enter a discount, expressed as an amount or percentage. The discounted price is calculated and set automatically.
- While on EDIT mode and select the product rate to update.
- Click on CALCULATE, on the base or tiered rate.
- In the Calculate Amount modal:
- Provide a number in the 'Initial Amount' text box (this can be the same or different than the base/tiered amount).
- Select between amount and percentage and provide a number in the text box below.
- Click anywhere outside the text box and check the calculated rate.
- Click on SAVE to apply the change.
- The system will set the amount that has been calculated, regardless if the 'initial amount' provided was different to the base or tiered amount.
- Positive numbers are used in discount calculations.
Negative numbers have the opposite effect (making the product more expensive).
Initial amount Discount Resulting amount 10.00 5.00 5.00 10.00 -5.00 15.00 10.00 5% 9.50 10.00 -5% 10.50
Adding a new product rate to existing price plans
Use the Add New Product action to define rates for new products in existing price plans.
- Select the plan to which the new product should be added.
- In the Data Entry page, click Add New Product from the Actions menu.
- Use Quick Search or click on the magnifying glass to search for the product.
- In the modal, enter the information that is necessary to create the product (refer to the price plan fields table).
Add the new product to an existing price plan directly from the Products Data Entry page, when creating the product.
Creating a conditional price plan
Conditional price plans can be used for billing jobs or subscriptions, subject to two types of conditions, defined in the price plan:
- Selection Conditions must be met to make the price plan available.
- Validity Conditions must be met in order to use the rates for billing.
Selection conditions can change from the time a price plan is set until it is billed. It is recommended to have the same conditions defined for selection and validity.
If validity conditions are not met during billing, then the system will use rates from the base price plan that was used when creating the conditional price plan.
Specify the criteria that match the price plan you are interested in or use NEW from the Actions menu to create a new plan. Provide the mandatory information in the price plan fields table before you SAVE the plan.
- Click on NEW from the Actions menu to create a new plan.
Provide the mandatory information in the price plan fields table (like in base price plans).
Important: Select a Base Price Plan for the system to use in case the selected conditional price plan conditions are not met during billing.
- Rates: Available rates from the selected base price plan are displayed. Change the rates individually or use the Replace Price Plan action to change all the rates simultaneously by a specific percentage value.
SELECTION & VALIDITY CONDITIONS (The process for adding selection or validity conditions is identical)
Follow the steps below:Under 'Evaluation Settings' select:
General: whether 'Criteria in all condition groups should be met' or 'Criteria in at least one condition group' should be met.
Condition Group Specific: whether 'Criteria in all condition rows should be met' or 'Criteria in at least one condition row' should be met.
Once Evaluation Settings are in place, click on each of the condition groups in the list to start defining group row conditions.
Click to ADD a new row, or ADD FROM TEMPLATE (a saved row that was used previously with preset values, such as for type and operator) to select an existing condition group row.
- Type: Select from the drop-down list.
- Operator: Select whether the defined values should be 'Equal' or 'Not Equal'.
- Value: ADD VALUES from the modal for each selected condition group row.
- Specify whether all values, or at least one, defined in the modal should be met.
Value 1 - Value 20: Use Quick Search or click on the magnifying glass for a search modal to select the values to be used as conditions.
- Specify whether all values, or at least one, defined in the modal should be met.
- Value: ADD VALUES from the modal for each selected condition group row.
- Save as Template: Save the values for each condition group as a template, so that it can be used again with condition groups of the same type.
- Click on SAVE AS TEMPLATE and provide a name and description.
- Once all the condition group rows are complete, repeat the process for a new condition group.
- Select the Allowed Organisational Units that are authorized to select and assign the price plan.
SAVE the price plan.
Selection and Validity Conditions
Each condition group type selected in the condition group has different available values:
| Type | Evaluated against | Only available for 'Selection conditions' |
|---|---|---|
| Subscription Type | Subscription type of the subscription being billed. | |
| Billable Entity Maturity | Maturity of the billable entity; whether it is a new or existing subscription or job. | |
| Billable Entities Existing Products | Physical goods or services added to the subscription or job. | |
| Billable Entities Products To Be Added | Products that will be added to the subscription or job. | |
| Billable Entities Existing Price Plans | The price plan already used by the subscription or job | |
| Billable Entities Owner Groups | Group that owns the subscription or job. | |
| Accounts Receivable Classifications | Classification of the account owner of the subscription or job. | |
| Accounts Receivable Credit Ratings | Credit rating of the account owner of the subscription or job. | |
| Accounts Receivable Payment Preference | Payment preference of the account owner of the subscription or job. | |
| Billing Term Scheme | Billing term scheme of the subscription or job. | |
| Billing Terms Binding State | Binding state of the subscription; i.e., whether the subscription is in or out of binding. | |
| Billing Terms Binding Period | Binding period of the subscription; e.g., for one or two years. | |
| Billing Terms Billing Frequency | Billing frequency of the subscription; e.g., monthly or annual. | |
| Segmentation | Accounts receivable that belong to a selected segment. |
Defining product bundle pricing
A product bundle is a combination of component products offered for sale as one product, such as a single package including multiple channels. Fixed Bundle Products have a fixed selection of constituent products as components. Flexible Bundle Products are available for termed services and have a variable selection of constituent products as components. The price of a fixed bundle product is set as that of a regular product.
Flexible bundle products allow the user to define prices at:
- Bundle level; i.e., one price for all included products.
- Product level, and differentiate when a product is sold as a stand-alone or part of a bundle.
- Both bundle and product levels.
To add a rate at bundle product level:
- Add the product to the price plan.
- Provide the information required in the 'Rates' section.
- Leave 'Applicable Only If Part of Bundle' empty.
To add a rate for a product when provided through a bundle:
- Add the product to the price plan.
- Provide the information required in the 'Rates' section.
- Under 'Applicable Only If Part of Bundle' select the bundle that the product is part of.
To add a rate for a product that is sold as a standalone product and as part of a bundle:
- Add the product to the price plan.
- Provide the information required in the 'Rates' section.
- Leave 'Applicable Only If Part of Bundle' empty
- Add the product to the price plan again.
- Provide the information required in the 'Rates' section.
- Under 'Applicable Only If Part of Bundle' select the bundle that the product is part of.
Calculating the price of termed services for specific periods
When a rate is provided for a termed service over a specific period (e.g., 2 weeks), the following steps are used to calculate the price:
- The time period value and UOT are taken into consideration.
- If the price plan provides a rate for the exact period being rated, then that rate is used.
E.g., if a termed service is rated for a 3-day period and the pri
Price Plans Business Example
Scenario
Company ZX wants to set rates for its products, according to its billing requirements:
- TV Subscription Start-up fee.
- Start-up fee: €5
- Start-up fee: €5
Installation Service Fee, with a tiered rate, based on duration.
- 1 hour: €20/hour
- 2 to 5 hours: €15/hour
6 or more: €10/hour
E.g., a five-hour installation is billed €80 [(1*20)+(4*15)].
Repairs, with a flat rate, based on duration.
- 1 hour: €20/hour
- 2 to 5 hours: €15/hour
6 or more: €10/hour
E.g., a repair that takes five hours is billed €75 (5*15).
- Antennas, with a flat rate, based on quantity.
- 1 unit: €10
- 2 units: €9
- 3 units: €8
- 4 units or more: €7.
E.g., purchasing three antennas costs €24 (3*8).
- Decoders, with a tiered rate, based on quantity.
- 1 unit: €10
- 2 units: €9
- 3 units: €8
- 4 units or more: €7.
E.g., purchasing three decoders costs €27 (10+9+8).
VOD Service fee, with a flat rate, based on the number of distributors that the service is supplied to.
- One Main Distributor (1): €5
- Main and Twin 1 Distributors (2): €4
- Main, Twin 1 and Twin 2 Distributors (3): €3
- Additional distributors (4 or more): €2.
E.g., viewing from three different boxes costs €9 (3*3).
PPV Service fee, with a tiered rate, based on the number of distributors that the services are supplied.
- One Main Distributor (1): €5
- Main and Twin 1 Distributors (2): €4
- Main, Twin 1 and Twin 2 Distributors (3): €3
- Additional distributors (4 or more): €2.
E.g., viewing from three different boxes costs €12 (5+4+3).
Gold Service Subscription, based on a monthly fee with a free three-month trial period.
- The subscription is free for the first three months.
- From the fourth month onward, the subscription costs €20/month.
Solution
Create the following Base Price Plan
- Create the price plan
- Add the rates to the plan
- Refer to the table below for the rate type and model used to satisfy each requirement.
| Product Name | Product Rate Type | Rate Model | Base Amount | Tiered Price | Comments | |||
|---|---|---|---|---|---|---|---|---|
| Tier Level | From | To | Tier Amount | |||||
| Start-up fee | Expense | Flat rate | €5 | Tiered rates are not allowed for 'Expense' rate type | ||||
| Repairs | One-time service | Flat rate, duration based | €10 | |||||
| 1 | 1 | 1 | €20 | |||||
| 2 | 2 | 5 | €15 | |||||
| 3 | 6 | Unlimited | €10 | |||||
| Installation service Fee | One-time service | Tiered rate, duration based | €20 | Five hours of repairs costs: (1*20) + (4*15) = €80 | ||||
| 1 | 1 | 1 | €20 | |||||
| 2 | 2 | 5 | €15 | |||||
| 3 | 6 | Unlimited | €10 | |||||
| Antenna | Physical good | Flat rate, quantity based | €10 | Purchasing three antennas costs: 3*8 = €24 | ||||
| 1 | 1 | 1 | €10 | |||||
| 2 | 2 | 2 | €9 | |||||
| 3 | 3 | 3 | €8 | |||||
| 4 | 4 | Unlimited | €7 | |||||
| Decoder | Physical good | Tiered rate, quantity based | €10 | Purchasing three decoders costs: 10+9+8 = €27 | ||||
| 1 | 1 | 1 | €10 | |||||
| 2 | 2 | 2 | €9 | |||||
| 3 | 3 | 3 | €8 | |||||
| 4 | 4 | Unlimited | €7 | |||||
| Gold | Termed service | Tiered rate, maturity based | €20 | A subscription billed for a year is billed: (3*0) + (9*20) = €180 | ||||
| 1 | 1 | 3 | 0 | |||||
| 2 | 3 | Unlimited | €20 | |||||
| VOD service | Termed service | Flat rate, quantity based | €5 | Service is distributed on four distributors: 4*2 = €8 | ||||
| 1 | 1 | 1 | €5 | |||||
| 2 | 2 | 2 | €4 | |||||
| 3 | 3 | 3 | €3 | |||||
| 4 | 4 | Unlimited | €2 | |||||
| PPV Service | Termed service | Tiered rate, quantity based | €5 | Service is distributed on four distributors: (1*5) + (1*4) + (1*3) + (1*2) = €14 | ||||
| 1 | 1 | 1 | €5 | |||||
| 2 | 2 | 2 | €4 | |||||
| 3 | 3 | 3 | €3 | |||||
| 4 | 4 | Unlimited | €2 | |||||
Notes
- If you are using a previous release, view CRM.COM Release Changes.
- Use the price plans WEB API to view existing price plans rates from an external system, such as a customer portal.
Glossary
| CRM.COM Term | Definition |
|---|---|
| Usage Service | A product (usually a service) provided on customer request and billed based on its usage. |
| Subscription | A collection of customer services billed on a recurring, usage or one-time basis. |
| Job | A 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. |
| Activity | A small task or action that is either stand-alone or must be completed as part of a larger project. |
| Expense | A service that is provided (usually on customer request) and billed once for a fixed amount. |
| Termed Service | A service that is provided continuously and billed for a recurring period, regardless of usage. |
| Physical Good | A tangible item that is provided to the customer, such as a camera, decoder or magazine (generally with exclusive ownership); can be traceable or non-traceable. |
| One-time Service | A service (usually requested by the customer), which is provided and billed once, based on duration.
|
| Provisioning Distributors | An abstract layer used in CRM.COM to relate subscription services (e.g., broadband service) and subscription associated devices (e.g., modems) to a provisioning provider and to define what services will be available from each device (if more than one is available on a subscription). |
| Segments | Lists of records in CRM.COM based on conditions that are defined using CRMQL, a CRM query language developed by CRM.COM. |