In this section, we will discuss advanced pricing models available in Zuora. These charge (pricing) will enable you to add more sophisticated rate plan charges to the products that you sell.
In addition to some of the basics covered in the previous tutorial, Zuora's Product Catalog provides you a flexible and configurable way to manage pricing models. One example that sets Zuora apart from others is the ability to support advanced charge models for any level of business complexity.
Unlike alternatives which limit your product rate plans to a single one-time charge and a single recurring charge, Zuora allows you to create an unlimited number of one-time, recurring, and usage-based charges for each rate plan. This flexibility is useful, for example, if you wish to charge both a monthly recurring license fee and an annual recurring support fee for a product that you sell. In addition, Zuora provides capabilities for volume pricing, tiered pricing, usage-based charges, usage-based charges for overage, and discount charge models. Zuora's product catalog is able to grow with your business as its needs become more complex.
Here are some of the key concepts to understand when looking to support more advanced charge models in Zuora:
Overage Smoothing Charge Model: Use this model if you want to avoid spikes and troughs in usage charges in any given month. The use of smoothing models help customers avoid paying too much if their usage spikes in any one period by considering usage over multiple periods. Some smoothing models, e.g. "rolling window", carry over unused units to the next period.
To learn more about the charge models in Zuora: