Setting Price Rates for Usage-Based Products (Beta)

Where: This change applies to Salesforce Classic and Lightning Experience in all Salesforce CPQ editions.

Note

As a beta feature, Usage-Based Pricing is a preview and isn’t part of the “Services” under your master subscription agreement with Salesforce. Use this feature at your sole discretion, and make your purchase decisions only from generally available products and features. Salesforce doesn’t guarantee general availability of this feature within any particular time frame or at all, and we can discontinue it at any time. This feature is for evaluation purposes only, not for production use. It’s offered as is and isn’t supported, and Salesforce has no liability for any harm or damage arising out of or in connection with it. All restrictions, Salesforce reservation of rights, obligations concerning the Services, and terms for related Non-Salesforce Applications and Content apply equally to your use of this feature. You can provide feedback and suggestions for Usage-Based Pricing in the IdeaExchange and through the Trailblazer Community. For information about enabling this feature in your organization, contact Salesforce.

Why: Usage-based pricing allows sales reps to set price rates for consumable services. Price rates are often determined through customer negotiation, research on customer spending trends, and discussion with the pricing strategy team.

How: After the sales rep agrees on a rating plan, they can use the Consumption Schedule object to group the rates in Salesforce.

Consumption schedules define the unit of measurement (1) and rating method (2) for all of your rates. You can associate one consumption schedule with several products, or several consumption schedules to one product that has multiple types of usage. The consumption schedule also defines the billing frequency (3) that Salesforce Billing uses to invoice the product.

All consumption schedules require at least one consumption rate.

The consumption rate sets a unit-based boundary for usage (1) and defines the pricing rate (2) for product that falls within that boundary. The pricing method (3) specifies whether to price usage in that boundary at flat rate or per unit of usage. For example, a consumption schedule for a phone dataplan could have two consumption rates: $0.10 per minute for the first 200 minutes, and $0.20 per minute for 201 minutes or more.

When you invoice your customer for a usage product, you'll set the product's actual price based on the customer's usage amount during the usage period and where that amount falls in your consumption rates.