Volume pricing model
The volume pricing model is one of the pricing models. This page explains how it calculates the amount of a pricing preset.Map of concepts
Related modules
The following modules use the volume pricing model:Volume pricing model: one price for every unit
The volume pricing model is the pricing model that uses the total quantity to select one tier and charges every unit the price per unit of that tier. The volume pricing model has a list of tiers, in Volume tiers. For each period, the quantity selects one tier, and the amount is:
A larger quantity can cost less than a smaller one. In the example, 1,000 units cost $100.00, and 1,001 units cost $80.08, because the 1,001st unit moves every unit to the second tier.
Zenskar keeps the full precision of the prices during the calculation. It rounds the amount to the currency at the end of the calculation of the line item.
Tier boundary: where an upper limit falls
The tier boundary is the setting that decides whether a quantity equal to the upper limit of a tier belongs to that tier or to the next tier. The tier boundary has two values:- The inclusive tier boundary is the tier boundary that keeps a quantity equal to the upper limit of a tier in that tier. It is the default.
- The exclusive tier boundary is the tier boundary that moves a quantity equal to the upper limit of a tier to the next tier.
The tier boundary matters only for quantities that equal an upper limit. All other quantities select the same tier with either tier boundary. Only the volume pricing model has a tier boundary. The tiered pricing model always uses the inclusive tier boundary.
Point-in-time products: one tier for each tier-reset period
For a point-in-time product, the price per unit of a tier is the price of one unit, with no period attached. The tier-reset period decides which quantities add up to select the tier. Zenskar adds up the quantities of all billing periods in a tier-reset period. That total selects one tier. Every billing period in the tier-reset period is then charged at the price per unit of that tier:
In April, the count starts again from 0, and the next quarter selects its own tier.
January on its own selects the first tier. When the total of the quarter passes 1,000 in February, the second tier applies to every month of the quarter, including January. A later billing period can therefore change the amount of an earlier billing period in the same tier-reset period. This can affect invoices that Zenskar has already issued. See Invoices.
When the tier-reset period equals the billing period, each billing period selects its own tier.
Period-of-time products: one tier for each quantity
For a period-of-time product, the price per unit of a tier covers one pricing period. For example, $20 per seat per month. A pricing preset of a period-of-time product has no tier-reset period. The quantity of a period-of-time product is a level that holds over time, such as a number of seats. Each quantity selects its own tier. Quantities do not add up across billing periods. Zenskar converts the amount to each billing period with the period ratio:
When the quantity changes partway through a billing period, each part of the billing period selects its own tier with its own quantity. For example, 8 seats for the first half of a month and 25 seats for the second half are charged at the first tier and at the second tier. See Partial periods.
This section describes billing periods that the line item covers in full, with the recurring quantity strategy.
Partial periods
The volume pricing model handles partial billing periods in the same way as the per-unit pricing model. For a period-of-time product with the recurring quantity strategy, the partial-period handling of the line item decides whether a partial part of a billing period is prorated by days or charged in full. The tier is selected first, and the proration applies to the amount. See Partial periods on the per-unit page. For a point-in-time product, the pricing model does not prorate.On-demand quantities on period-of-time products
With the on-demand quantity strategy, a quantity is a purchase at one point in time. For a period-of-time product, the on-demand quantity of a billing period selects its own tier. Zenskar charges the full price per unit of that tier, in the billing period of the purchase:Volume and tiered pricing models: one tier or several
The volume pricing model and the tiered pricing model use the same tiers. They differ in how many tiers a quantity uses. The volume pricing model charges every unit at the one tier that the total quantity selects. The tiered pricing model charges each part of the quantity at the tier that the part falls in. With the tiers in Volume pricing model, the two pricing models give the following amounts:
Within the first tier, both pricing models give the same amount. Above it, the volume pricing model gives the lower amount, because every unit gets the price of the highest tier reached. See Tiered pricing model.