Volume tiered
Volume tiered
In Flexprice, the Volume-Tiered model allows you to define multiple pricing tiers, where a single unit price is applied based on the total volume of usage. This means that the unit price is determined by the highest tier reached by the customer’s total consumption.
Example:
Consider the following pricing tiers for an API service:
| Tier | Usage Range (API Calls) | Unit Price ($) |
|---|---|---|
| Tier 1 | 0 – 10,000 | 0.0010 |
| Tier 2 | 10,001 – 50,000 | 0.0008 |
| Tier 3 | 50,001 – 100,000 | 0.0006 |
| Tier 4 | 100,001 and above | 0.0004 |
If a customer makes 65,000 API calls in a billing period, their total usage falls within Tier 3 (50,001 – 100,000 calls) with a unit price of $0.0006. The total charge would be:
65,000 API calls × $0.0006 = $39
This model ensures that customers are charged a consistent rate for all units based on their total usage volume, which can either increase or decrease depending on the defined tiers.