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 = $39This 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.
