Creating Price Plans
Every item in a subscription plan must have an associated price plan. You must create price plans for every pricing interval in a price book.
A subscription plan and price book are not required when creating a subscription using the standard form. You can create a subscription using only add-on item lines, which reduces the complexity of creating a subscription. To learn how to create a subscription without a subscription plan or price book, see Optional Subscription Plan and Price Book.
When creating a price plan, the quantity for each item must be greater than zero (0). When you modify the price plan, you cannot set the quantity to zero (0) or a negative number.
Volume pricing charges all units at the price tier based on the quantity.
For high-level overview diagrams of the workflows that include this procedure, see Subscription Plan Creation, New Stand-Alone Subscription Creation, and Subscription Creation from a Sales Order.
To create a price plan:
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From the Price Books subtab of the subscription plan record, select an existing price book record.
If you have not already created a price book, follow the instructions in Creating Price Books.
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Configure the price plan:
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Click the edit icon for an item. The price plan window opens.
Note:You also can click the edit icon to edit an existing price plan.
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From the Type list, select one of the following:
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Tiered – Most commonly used for recurring items. Tiered pricing charges a specified rate for all items sold in the tier (for example, the first 10 items). When the quantity sold exceeds the upper limit for the tier, NetSuite charges the price specified for the next tier for the additional items.
Example:
A beverage subscription with tiered pricing includes the following pricing levels:
Quantity tier 1: For 0–10 items, the price is $5.00
Quantity tier 2: For 11–20 items, the price is $4.95
Quantity tier 3: For 21+items, the price is $4.90
If a customer orders 22 items, the charge is (10 x $5.00)+(10 x $4.95)+(2 x $4.90) =$109.30.
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Volume – Most commonly used for usage pricing. For volume pricing, the total quantity sold defines the charge rate for all items in the order.
Example:
A beverage subscription with volume pricing includes the following pricing levels:
Volume tier 1: For 0-10 items, the price is $5.00
Volume tier 2: For 11-20 items, the price is $4.95
If the customer orders eight items, the per item charge for the order is $5.00. The total charge is (8 x $5.00) =$40. If the customer orders 22 items, the per item charge for the order drops to $4.95. The total charge is (22 x $4.95) =$108.90.
When you create a price plan, you can set minimum and maximum amount limits for pricing tiers. See Price Plan Minimum and Maximum Amounts.
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From the Pricing Option list, select one of the following options:
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Rate – Calculates the item amount as (quantity x rate).
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Fixed Amount – The item’s defined charge amount is not affected by its quantity.
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In the Value field, enter an amount to charge for the item.
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To add more pricing for additional quantities, click Add.
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Repeat step 2 for each subsequent item in the price book. Every item in a subscription plan must have an associated price plan.
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Click Save to submit the price plan. NetSuite returns to the Price Book page and displays the new price plan in the item columns.
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From the Charge Frequency list, select Weekly, Monthly, or Annually.
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Unless the item is a one-time item, from the Repeat Every list, enter a number for how often you want the charge to occur. For example, if you want to charge monthly, select Monthly from the Charge Frequency list and enter 1 in the Repeat Every field.
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Click Save to save the price book.
Related Topics
Price Plan Minimum and Maximum Amounts
You can use the Minimum Amount and Maximum Amount fields on the Price Plan record to set an overall minimum and maximum per charge period. If the value computed through the tier setup is below your minimum or above your maximum then the values of the Minimum Amount and Maximum Amount fields are used instead. This feature offers flexibility to set an overall minimum and maximum value charged to customers, but allows the tier structures to be calculated separately.
Only when Advanced Subscription is enabled, the following optional new fields are added to the Price Plan record:
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Minimum Amount
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Maximum Amount
Tier-Level Minimum and Maximum
You can set minimum and maximum amount limits for pricing tiers. Consider the following pricing tier examples. The prices and discounts are structured in tiers based on the quantity purchased:
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0–100 recurring licenses purchased cost $3.00 each.
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101–200 recurring licenses purchased cost $2.00 each.
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201+recurring licenses purchased cost $1.00 each.
You can enter a minimum amount of $150. This forces customers to purchase at least 50 recurring licenses, even if the item has a quantity of only 1.
You may also have a discount in which after a certain price is reached, the cost for your customers does not increase. If you enter a maximum charge of $500.00, the customer does not have to pay for additional licenses after they have spent $500.
A volume tier can have a maximum price. But in most cases, a maximum price is needed only for the tier with the highest number range.
When a change order changes the price plan mid-period, NetSuite prorates the minimum and maximum amounts.
Example: A customer subscribes to your news website. The minimum charge is $10. You submit a change order on April 13. For April 1-12, NetSuite prorates the minimum charge as days used so far divided by total days in the month, multiplied by the minimum charge:
4 =(12 ÷30) x 10
For April 13-30 (18 days), NetSuite prorates the minimum as days remaining divided by total days in the month, multiplied by the minimum charge:
6 =(18 ÷30) x 10
To learn SuiteBilling change order fundamentals, see SuiteBilling Change Orders.