Fixed Price
Fixed rate is charged irrespective of the usage. For example - if a fixed price rate card is defined with a price of INR 500, then INR 500 is added to the invoice irrespective of usages for fee component.Rate Per Unit
Each usage of the fee component is priced at same price. For ex - if a rate card is define as per unit rate of INR 10, then the price would be calculated as (total_usage * 10)Graduated Pricing
This pricing is used when different usage amounts are divided into different tiers. Think of cases when you want the per unit price to go down as users use more of your product (a discount of sorts). In that case, one can define tiers as below
A given usage for a billing period will be divided into separate tiers and pricing for each tier will be calculated separately. Refer to the table below:
Volume Based Pricing
This pricing is used when the total usage amount falls into a single tier, and the entire usage is priced at the rate of that tier. Think of cases when you want to give a better per unit price only if the customer crosses a certain threshold — and the entire usage benefits from that lower price. For example:
A given usage for a billing period is matched against the appropriate tier, and the entire usage is priced at that tier’s rate. Refer to the table below:
Min Max Pricing
This pricing is used when the charge is the minimum or maximum of two amounts — typically between a flat fee and a fee calculated as a function of the total usage (either a fixed amount per unit or a percentage of total value). It’s useful when you want to ensure a minimum revenue floor or cap the charge at a certain maximum value, regardless of high usage. For example -
Types of min-max logic:
- Minimum of (flat fee, % of usage) → useful for discount caps
- Maximum of (flat fee, % of usage) → useful for minimum commitment pricing