Customers are charged the same amount each billing cycle. Subscription Pricing Models Flat-Rateĭefinition: Flat-rate, also known as fixed pricing, offers users a single price for all features of the offering. With models ranging from simple and fixed (e.g., flat rate) to complex and variable (e.g., usage-based), the options allow you to optimize your subscription offering for your target market. In the first of our three-part series on pricing subscriptions, we will address the first question of choosing the subscription pricing model that best serves both the company’s and customers’ needs.

Which pricing method should we use to calculate the price of our product or service?.Which pricing strategies can we implement to attract and retain customers?.Instead, the pricing question becomes three-pronged: Congratulations! Now, a follow-up: How exactly will you price your new subscription?Īs tempting as it might be to “go with your gut,” that approach will likely prove a less-than-optimal strategy for monetization, as well as for customer acquisition and retention. Companies will have to examine their product, market, competition, revenue drivers and more when choosing the best pricing model to optimally monetize their offering.Īfter thinking it over and analyzing the benefits, your company has decided to create a subscription offering.Subscription pricing models range from simple fixed-rate to more complex ones that charge by usage and establish tiers.Once a company decides to pursue a subscription offering, it must make another complex decision: which subscription pricing model to use.

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Subscription feed