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Defining pricing model

Overview

Project X features a fully-fledged billing engine that is capable of managing the full life cycle of your customers' subscriptions.

It calculates amounts to be paid, issues invoices, initiates payments and tracks payment status.

Each time a call to your API is made, Project X API Gateway records related quota usage automatically. This data is then processed by Project X Billing Engine to calculate the final amount due.

All pricing models, except for the flat fee, set the price of a single quota unit.

Note

Read "Before you begin" to learn more about the product concept.

Also, read more about quotas here.

You can add one or several prices to the product.


For metered prices, Project X tracks actual usage of the priced quota and the final amount is calculated using that data at the end of each billing period.

Example

If there is a soft-limit quota for processed images and a metered "Standard" price of $1 per processed image, the customer is charged

<actually processed images> x $1 each billing period.

For unmetered prices, the customer is charged for the full quota quantity, regardless of the actual usage, at the beginning of the billing period.

Example

If there is a quota for 1000 processed images and a non-metered "Standard" price of $1 per processed image, the customer is charged

1000 x $1 each billing period.


Pricing models

Flat fee

The simplest one. The same amount is billed each time.

Standard

Charge the same price for each unit of the quota.

Example

If there is a quota of 1000 units, and a standard monthly price of $0.5 per unit, then the customer is billed

1000 x $0.5 = $500 every month.

Package

Charge for a group of units ("package").

Example

If there is a package monthly price of $5 per package of 10 units and a quota of 35 units, then the customer is billed

4 packages x $5 = $20 monthly.

Graduated

Tiered pricing model. Charge different price per unit based on the tier configuration.

Example

With the following tiers:

For the first 1-10 units: $0.5 per unit + $5 flat fee

For the next 11-40 units: $0.3 per unit

For the next 41-∞ units: $0.1 per unit

if there is a quota of 50 units, the final amount is calculated as:

First 10 units * $0.5 + $5 flat fee
+ next 30 units * $0.3
+ next 10 units * $0.1

= $20

Volume

Charge different price per unit based on the total number of units.

Example

With the following tiers:

Total 1-100 units: $0.5 per unit + $5 flat fee

Total 101-200 units: $0.3 per unit

Total 201-∞ units: $0.1 per unit

For a quota of 50 units, the final amount is calculated as:

50 units * $0.5 + $5 flat fee = $30

For a quota of 140 units, the final amount is calculated as:

140 units * $0.3 = $42