Consumption-based deals are pricing agreements where customers are billed based on actual usage, rather than a fixed recurring subscription. These models are common in industries such as cloud services, marketing platforms, and telecommunications, where usage patterns can vary greatly over time.
For example, Logz.io offers a consumption plan where customers are charged based on their use of specific products. Although only selected products are actively sold and billed, it's still essential to sync rate card information for all products—whether selected or not.
How to Set Up Assignment Rules for Consumption Plans
To correctly reflect both selected and non-selected products in the CRM, define two assignment rules:
- Rate Card Assignment Rule (for unselected products):
Ensures that all consumption products are synced to the CRM, even if they were not chosen.
This allows for rate visibility without charging the customer.
- Product Assignment Rule (for selected products):
Applies when a product is explicitly selected by the user in the quote.
These products will be billed based on actual usage and standard pricing.
How to Create a Pricing Rule for Consumption Products
- Define a pricing rule that provides the MSRP (list price) for each product.
- This pricing rule should apply to all products in the consumption plan, regardless of whether they are selected or not.
How to Use a Special Factor or Discount Table to Zero Out Unselected Products
To avoid charging customers for products they did not choose:
- Create a special factor or a discount table that sets the net unit price to 0 for all unselected products.
- Apply this factor via the rate card assignment rule.
If you're using a discount table, make sure to:
- Create two separate pricing rules (one for selected, one for unselected products).
- Connect the appropriate pricing rule to the correct discount logic.
How to Sync MSRP Values to the CRM
Even when the net price is zero, it is essential to ensure that the MSRP continues to sync to the CRM. This maintains pricing transparency and ensures consistency in reporting and data accuracy across systems.
How to Use This Setup in Sales Mode
Plan Type: Consumption, No Product Selected
- All products are listed in the quote.
- MSRP values are retrieved from the pricing rule.
- Net unit price = 0, due to the special factor or discount table applied via the rate card rule.
Plan Type: Consumption, Log Management Selected
- All products are still listed.
- MSRP values are pulled from the pricing rule.
- Net unit price = MSRP, since Log Management was selected and is billed accordingly.