understanding and creating price plan components.docx

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Understanding and Creating Price Plan Components

Donna McPhee– Customer Success Manager

March, 2013

www.fusebill.comCall Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013. All rights reserved

Monday, April 10, 2023 2

Speaker Introduction

Donna McPhee, Customer Success Manager


E: [email protected]: 888.519.1425 x415


Agenda

1. What’s a price component?2. Popular Price Components3. Component Reports4. What about the Why?5. Summary6. Questions



What’s a price plan component?


A price component is really just: what (cost) and how (frequency+when) you charge your customers for your products and/or services.

There are 2 main categories:• Those charged on a one time basis.• Those charged on a recurring basis that you define.

Recurring price component types:

• Core Plan Components• Recurring Add-ons• Metered Components


Example – Skype Price Components

All of the menu items under Prices are Skye’s price plan components.

www.fusebill.comCall Us at: 1-888-519-1425 Copyright Fusebill Inc. 2013 All rights reserved


Core Plan Components

Monthly recurring charge Customer chooses the core plan

that suites their needs.



Creating core plan component in Fusebill

Fill in the details of your core plan and click create.



Addon Components



Creating Addon components in Fusebill

• Creating an add on component is very similar to creating a core plan component.


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One-Time Components


Skype sells apps as one time components and hardware.


Creating one time components in Fusebill

Both of these one time components have now been created in Fusebill.


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Coupons



Creating coupons components in Fusebill


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Metered Components


Metered components are used when customers are charged on usage/volume, etc. (in this example a price per minute) this can be:• Standard• Tiered• Volume• Stairstep


How to create metered components in Fusebill

The metered charge components popup is the most detailed of all the price components.



Component Reporting


Stats! Stats! Stats!

Being able to create components doesn’t mean very much if you can’t easily track or report on them.


Component Reporting


The Components Section of the Reports tab

Here you’ll find more detailed report options for your components.

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The Why?

• The one time transaction is a thing of the past.• You have to give customers what they want.• Empower your sales and marketing people• Free up your IT team• Keep accounting happy

Flat pricing is usually only used because it’s easy!


Knowing what price components are, how to create them, and how to track them is great but why is this important for your subscription business?

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The Why?Build Relationships


• At the center of a subscription business is the vendor-customer relationship.

• Subscription relationships have 3 key attributes:• Faster turns – customers change their subscription

at will to adjust to their needs. • Lower margins – Customers buy just what they

need. • Cancel anytime – Customers don’t want a

commitment, they want to be able to walk away at anytime.

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The Why?Empower Sales and Marketing


The inability to easily introduce new price plans and test pricing is often one of the hardest obstacles for sales and marketing.

Sales are more often than not are the front line talking to customers and closing deals, they need the flexibility tailor the offering to the customer and once the deal is closed keep the customer happy and paying monthly.

Both groups need to be able to access information vital to their success:- Are price plans working?- Are customers happy i.e. churn- Are some price components working better than

others?- Is per customer profitability being measured and

measured accurately?

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The Why?Keep IT Happy


The inability to easily introduce new price plans and test pricing is often one of the hardest obstacles for sales and marketing.

Sales are more often than not are the front line talking to customers and closing deals, they need the flexibility tailor the offering to the customer and once the deal is closed keep the customer happy and paying monthly.

Both groups need to be able to access information vital to their success:- Are price plans working?- Are customers happy i.e. churn- Are some price components working better than

others?- Is per customer profitability being measured and

measured accurately?

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The Why?Happy Accountants


Eliminate manual billing processes and reduce errors.

Track revenue and deferred revenue.

Taxes

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Summary


Being able to easily create price components and move away from flat pricing is an important key to subscription success.

• A price component is really just: what (cost) and how (frequency+when) you charge your customers for your products and/or services.

• There are 2 main categories:• Those charged on a one time basis.• Those charged on a recurring basis that you define.

• Not only do price plan components need to be easy to create, they have to be trackable and reportable.

• A billing system that give you price plan components that are flexible and robust, not only makes customers happy but your entire organization as well.

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www.fusebill.com

Thank You!

[email protected]: @fusebill

http://www.fusebill.com/

understanding and creating price plan components.docx

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