12 Examples of Usage-Based Pricing Models | Gotransverse

As companies look to differentiate in their respective markets, we are seeing an uptick in usage-based, or consumption-based pricing model discussions with both our clients and prospects. This unlocks an opportunity to drive new, incremental revenue beyond the subscription, moving to a recurring+ model.

Usage-based billing allows companies to price, package and sell in a variety of ways including:

  • Minimum: minimum price points based on usage
  • Flat Rate: fixed fee regardless of usage
  • Standard, Volume and Flat Rate Tiered: various price points for ranges of usage
  • Pooling: share usage across multiple services from the same master account
  • Threshold: pricing changes based on usage
  • Rollover: usage allocated not used in one service period is shifted to the next
  • Overage: fees for using more than the allotment
  • Pay-as-you-go: usage-based pricing, paying as the customers consumes
  • Time-based: pricing set on a fixed time, typical of subscription offers
  • Surcharge: additional costs incurred due to supply/demand, peak hours, etc.
  • Rated/Mediated: pricing based on business logic and event combinations

Traditional CRM and ERP software platforms were not created to handle usage-based offers. Our intelligent billing platform automates the processes of accepting incoming events, identifying the correct customers, current allowances and price plans, correctly calculating the charges, and applying the charges to the customer accounts.

If your company is looking to capture new revenue through usage-based offerings, let our 250+ years’ experience in usage-based packaging, pricing and billing guide you through your options.