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Usage tiered pricing with adjustments and formula support

Zuora

Usage tiered pricing with adjustments and formula support

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You can configure dynamic pricing with tiered usage charges and apply formula-driven adjustments, such as discounts or multipliers, on top of the base pricing.

Bussiness scenario

A SaaS platform charges based on API calls. Different tiers apply, and a 10% discount adjustment is applied for premium customers.

Tier

Start Unit

End Unit

Base Price (per unit) 

Formula Adjustment

Min.

Max.

1

0

1000

$0.05

10% discount

$40

$60

2

1001

∞

$0.03

10% discount

$80

$200
  • A customer uses 800 calls → Base = $40 → After 10% discount = $36 → Min = $40 enforced → Final = $40
  • A customer uses 1,500 calls → Base = $40 (tier 1) + $15 (tier 2) = $55 → After 10% discount = $49.5 → within Min/Max → Final = $49.5
  • A customer uses 10,000 calls → Base = $340 → After discount = $306 → Max = $200 enforced → Final = $200

This demonstrates how formula-based adjustments can be layered on top of tiered pricing while still respecting min/max thresholds.

Configure in Zuora UI
  1. Go to Products > Catalog Beta and open the product.
  2. Create or edit a rate plan.
  3. Select Charge Type as Usage and Charge Model as Tiered.
  4. In the Pricing section, select Dynamic Pricing.
  5. In the Decision Table:
    1. Attribute = Customer Segment (e.g., Standard vs. Premium).
    2. Define tiers (0–1000 = $0.05, 1001+ = $0.03).
    3. In the Enter Formula box, enter a calculation such as Price * (1 - 0.1) for Premium customers.
    4. Set Min and Max thresholds for each tier.
  6. Click Save.