Overview of Offers
After a product is created with product rate plans and product rate plan charges in your product catalog, use the Offers feature to define a unique group of charges to sell as a bundle. You can define multiple prices for a single product rate plan charge or for the bundle as a whole without the need to duplicate product rate plans and product rate plan charges in your product catalog.
The Offers feature provides you with the flexibility of defining different product packages with multiple prices for all charge types across different geographic regions, sales areas, customers, or billing frequencies, for example.
The Offers feature is in the Early Adopter phase. We are actively soliciting feedback from a small set of early adopters before releasing it as generally available. To manage and access the self-serve interface for Offers, see Feature Management.
The Offers feature is only available in tenants with Orders or Orders Harmonization enabled. Offers and price book items are available together.
Offers and price book items
There are two levels of offers: top-level and component-level. The difference between the two is the level at which the price is to be applied. In a top-level offer, you define a price as a total for the entire offer. In a component-level offer, you define prices for each product rate plan charge that the offer contains.
Only the component-level offer is supported during the Early Adopter phase.
When creating a component-level offer, you add product rate plans to the offer. All charges within the product rate plan are automatically added to the offer as a starting point. You can define as many price book items as needed for each charge. Zuora will prevent duplicate price book items from being created. Duplicates are defined as price book items where charge ID, offer ID, currency, and custom field values are precisely the same. Each price book item can be configured with up to 50 custom attributes, distinguishing different prices for each charge. Each price book item can be for a specific sales organization or customer group and can have more than one price over time using interval pricing. After the offer is in place in the product catalog, you can create or update your customer’s subscription to subscribe to the offer. Then, the customer will be charged according to the prices of the offer or charges defined on the subscription.
A price book item in an offer can be one of the following types. The price book item type determines whether you can define more than one price based on time intervals.
- Regular Pricing
- The price book item of this type can have only one fixed price defined.
- Interval Pricing
- The price book item of this type can have more than one time-based price defined, which will change over intervals. You can define a period and one price for a single interval. Up to 100 intervals can be defined within one price book item. One interval immediately follows the previous interval without breaks. Prices defined for intervals are used sequentially.
- The interval duration types can be Day, Month, or Infinity. An infinity interval means that the price defined in that interval will be billed until the offer is removed or the subscription is canceled.
- When creating bill runs for a subscription with any term across multiple pricing intervals, keep the following notes in mind:
- Set the Invoice Past End-of-Term when Auto-Renew is OFF? billing rule to No.
- Set the Invoice Past End-of-Term when Auto-Renew is ON? billing rule to No.
- Set the target date of the bill run to the day before the end date of the corresponding subscription term.
The following graphic shows an example of two price book items defined for the Daily Service rate plan in a product offer. Two price book items have different delivery schedules. Both of them are of the interval pricing type. When your customers subscribe to this offer, for the Daily Service - Sunday deliveries, they will be billed $4.75 per delivery for the first 365 days and $9.5 afterward. For the Daily Service - Weekday deliveries, your customers will be billed $0.875 per delivery for the first 365 days and $1.75 afterward.
Supported charge models
The following charge models are supported with interval pricing on component-level offers:
- Flat Fee Pricing
- Per Unit Pricing
- Volume Pricing
- Tiered Pricing
- Overage Pricing
- Tiered with Overage Pricing
- Delivery Pricing