Formula-based Pricing

Calculate the price for a product based on a formula that takes multiple conditions/attributes into account, using the same concepts as formulas in Excel.

Examples: pricing based on physical dimensions (such as length and width) or pricing based on distance traveled plus time of use.

Time-based Pricing

This model uses effective dates and/or time of day the service is used to determine the rate to charge.

Examples: charge based on time of day – charge more during rush hour versus using the service mid-day, or pay more for streaming service from 8:00 pm – 10:00 pm than other times of the day.

Demand-based Pricing

Also referred to as surge pricing, this dynamic billing model allows the price to fluctuate based on customer demand.

Examples: charge more for an airline ticket 3 days in advance of take-off or charge more for remaining parking spots as availability declines.

Event-based Billing

Event-based billing allows businesses to automatically send invoices in response to specific events that are defined based on usage or other related account or product changes.

Segregate like usage charges into separate, smaller invoices that can be routed to different payers in real time to create a more continuous flow of revenue.

Example: bill based on acceptance of a project, delivery of a specified number of widgets or percent completion.