Percent pricing

You can bill your customers a percentage of the transaction value or of either metered or non-metered consumption by using percent pricing.

In Zenskar, percent pricing is a pricing strategy in which a product is priced according to the following rules:

  • Case 1: If the product is metered, it is priced at a percentage of the selected billable metric, measured in the currency configured in the contract. Refer to this section for details.
  • Case 2: If the product is not metered, it is priced at a percentage of the quantity, measured in the currency configured in the contract. Refer to this section for details.

Case 1: A metered percentage-based product

  • Let us take Delivery charges as an example of a metered percentage-based product.

  • Let us assume that a billable metric named Compute is attached to the product. Compute returns the number of units shipped in a given billing cycle.

  • Let us calculate delivery charges as a percentage of the value returned by Compute.

    In general, for metered percentage-based product, the following equation hold true:
    Amount contributed by the percentage-based product to the invoice = (Percent * Billable metric) / 100
    
    Therefore,
    Delivery charges (USD) = (Percent * Compute) / 100
    

  • Let us assume that Compute reports 100 units being shipped in the given billing period.

Product namePercent (USD)Billable metric (units)
Delivery charges5100

The delivery charges for the above example can be calculated as shown below:

Delivery charges (USD) = (5 * 100) / 100 = USD 5

Case 2: A non-metered percentage-based product

  • Let us continue with Delivery charges as an example of a percentage-based product. However, in this example, Delivery charges is a non-metered product.

  • Delivery charges being a non-metered product, the quantity is predefined in the product.

  • Let us calculate delivery charges as a percentage of the predefined quantity configured in the product.

    In general, for non-metered percentage-based product, the following equation hold true:
    Amount contributed by the percentage-based product to the invoice = (Percent * Quantity) / 100
    
    Therefore,
    Delivery charges (USD) = (Percent * Quantity) / 100
    
  • Let us assume that a quantity of 100 units were shipped in a given billing period, per product definition.

Product namePercent (USD)Quantity (units)
Delivery charges5100

The delivery charges for the above example can be calculated as shown below:

Delivery charges (USD) = (5 * 100) / 100 = USD 5

Percentage-based product in the invoice

The invoice for the above examples is shown below. The percentage-based product, Delivery charges, is highlighted:

Add a percentage-based product

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Important

Refer to the products documentation to learn more about the concept of products in Zenskar.

Step 1: Add a percentage-based product

  1. Navigate to Contracts > Products, and click on the ADD PRODUCT button.
  2. Select the Percent Pricing from the drop-down.
  3. Select or deselect Metered:
    1. If the service or product is metered, select the appropriate billable metric from the drop-down.
    2. If the service or product is not metered, enter the quantity.
  4. Fill in all other details, and select all the desired features.
  5. Save the product.

Step 2

Add product to new contract

  1. Navigate to Contracts > Contracts, and click on the + ADD NEW CONTRACT button.
  2. Click on the + ADD NEW PRODUCT button.
  3. Select the product(s) based on package pricing for the contract.

Add product to new template

  1. Navigate to Contracts > Templates, and click on the + ADD NEW TEMPLATE button.
  2. Click on the + ADD NEW PRODUCT button.
  3. Select the product(s) based on package pricing for the template.