When you add a recurring Product to a Plan, you can choose to configure a price uplift schedule on that product. This schedule allows you to pre-define an automatic price increase at a later date in the subscription's life cycle. The most common use for this is to set up an annual price uplift on a customer's monthly subscription.
By default, there is no price uplift schedule on a product; all products continue to charge their base price forever.
To enable a Price Uplift Schedule, click the switch to On, and the schedule grid will appear.
Including Initial Charge
This setting allows you to specify whether the first activation charge should consume an interval for the price uplift schedule.
Uplift Prior to Recharge
This setting is useful for annual frequencies as it allows you to maintain pricing for the year and apply the price uplift just prior to recharge.
Each row in the price uplift table represents a planned price increase. You can have as many uplifts as you wish; however, if the amount of the price uplift does not change, you will only need one line.
Defines at what point the price uplift will take place. The first line either read "After Initial charge" or "Including First Charge". The product must be charged for at least one period before the price uplift schedule is activated.
After the first price uplift, you can choose to continue with different uplifts on whatever schedule you choose. In the example above, the price of the product increases by 5% after the first year, and then 3% after the second and subsequent years.
The # of periods after which the uplift should be implemented. The most common structure for a monthly would be after 12 periods (1 year), the price increases by the specified percentage.
Note that you can control if the initial charge consumes the "first" period.
|Increase Price by (%)||
The percentage which you would like to increase the price by after the time has elapsed.
Note: You can only specify percentages for the increase, not absolute dollar amounts. This is because the percentage needs to be applied to the actual price charged, which can vary if the pricing model is not Standard (e.g. if it is Tiered, Stairstep, or Volume).
You Can choose to set your Price Uplifts to Repeat itself automatically throughout your customer's life cycle
The last column contains a Remove Range button if there is more than one line in the table; click it to remove the range in question. The other line items will automatically adjust to fit the new schedule.
There is also an option to repeat the last line forever, if that increase is intended to take effect every time the number of periods have elapsed. Click On to apply the increase forever, or leave it Off if it is to only be applied once.
Some notes to consider when configuring Price Uplifts:
- Price Uplift Schedules are defined at the Catalog level, so that all new subscribers to this Plan will automatically receive the scheduled price increases. They can also be overridden at the individual Subscription level (see Configuring Products in the Plan). However, existing subscribers to this Plan will NOT inherit the Price Uplift schedule of the Plan. They will need to be manually adjusted to include an uplift schedule for future billing.
- Remember that Price Uplift Schedules are only valid on recurring products.
- Each product has its own Price Uplift Schedule, for each of its frequencies. If you wish to uplift multiple Products within the same Plan, you will need to configure their Price Uplift Schedules individually.
- Projected invoices and the Financial Calendar will properly reflect price uplift schedules at the right times (e.g. a price uplift that is 6 months out will show in the Financial Calendar for that month).