Pricing models
- Flat rate: every unit bills at a constant rate, regardless of volume.
- Tiered usage (graduated): units fill each tier in order, and each band keeps its own rate. For example, the first 5 GB at $1/GB, the next 5 GB at $5/GB.
- Volume (all units): the total quantity in the scope determines a single rate, and that rate applies to every unit.
- Volume / block tiers: pricing steps by block size, for example every 50 seats at a fixed block price. Later block sizes cannot be smaller than the previous tier’s Up To value.
rate × quantity × periods as an estimate; actual billing and recognition follow the tier schedule when you record usage.
Tier scope options
- Per usage: each usage row is priced on its own quantity, with no cumulative volume carried from earlier rows. Use this when every upload or meter event is independent.
- Per billing period: quantity accumulates within the billing period, then resets at the next period. Use this for monthly or periodic true-ups where the tier table applies to that period’s total consumption.
- Per obligation: quantity accumulates across the life of the obligation. Use this when tiers apply to lifetime volume on the commitment, not to a single invoice cycle.
Worked examples
The following examples show how the same quantity can produce different billed amounts under each model. Graduated (tiered usage), per billing period: A cloud storage obligation prices the first 5 GB at $1/GB and the next 5 GB at $5/GB. In a month with 8 GB of usage, DualEntry bills $5 for the first band and $15 for the remaining 3 GB, for $20 total. Volume (all units), per billing period: Seat pricing drops from $10 to $8 once monthly seats pass 100. At 120 seats, every seat bills at $8, for $960. Unlike graduated pricing, crossing the threshold reprices the entire quantity at the new rate, not only the units above 100. Volume / block tiers: Every block of 50 users costs $150. At 120 users, DualEntry prices three blocks (150 capacity) at $450 when the commercial terms bill full blocks. Flat rate (control case): The same 120 seats at a flat $9 rate bill $1,080 with no tier table involved. Compare that figure to the volume and block examples above when you validate that an obligation is still flat versus accidentally left on a tier schedule.Next steps
- Configure a pricing model and tier scope in Usage Pricing: Flat and Tiered Models.
- Upload usage across many contracts with Import Multi-Contract Usage.
- Model year-over-year price steps with Ramp Deals: Multi-Year Pricing.