Product Offer Pricing

9 Product Offer Pricing

Pricing Overview

Use this topic to understand the various pricing structures available to you when you create simple and bundle offers.

To begin with, you can set up your price lists, set up simple prices for offers, and go about enhancing your pricing strategy by applying advanced prices.

Unlike simple offers where you can add and alter prices, for a bundle offer the pricing section displays the preset prices of the individual simple product offers and also the rolled-up prices at the bundle level. It only enables you to alter prices. Additionally, you can also set commitment terms for your price plans to manage your product offer prices. You can also provide device programs for lease and installments by setting up different pricing structures for your customers.

Read the remaining sections in this chapter to understand how you set up pricing in the Launch application.

Pricing Structures

Use this topic to understand the pricing structure in the Launch application.

Price List

A price list is a set of standard prices for products and services. You can use multiple price lists to offer different prices for the same product as well as specify a price list. The price list specifies a price and the currency for that price. For example, you can use separate price lists to charge business customers 30 USD a month for internet service and charge residential customers 50 USD a month for the same service.

You can use multiple price lists to offer different prices in different market segments (such as consumer or business customers, as stated in the earlier example), with different currencies, through different sales channels (such as products purchased online or at a store), and to different geographic locations.

You can define the type attribution for a price list based on customer segment, location, or any logical extensible value. For example, a price list type can be residential, business, and so on.

As a product administrator, you can create a price list so that it can be used in both simple or bundle offers. Additionally, you can also look at all the simple or bundle offers associated to a price list. As a pricing specialist, you can remove your offer from a price list so that it no longer appears on the price list's list of offers. As a marketing product manager, while editing an offer, you can modify the price items on the price list.

As a marketing manager, while creating or editing a simple or bundle offer, you can view existing price lists, select a new price list, edit or delete an existing price list, so that the offer appears with the specified price on the selected price list.

Simple Pricing Types

Other than price lists, there are simple and advanced price types available to you. You can use the existing price lists while creating simple or advanced pricing types.

Here are some of the simple price types:

One-Time Fee: This is a nonrecurring charge, such as setup or cancellation fees. You purchase a broadband plan and it incurs a one-time setup fee of $100.
Recurring Fee: These are ongoing charges that aren't generated or affected by usage, such as a monthly subscription fee. You set up this fee to recur automatically based on the frequency of recurrence. For example, a $10 monthly subscription fee.
Usage Fee: These are charges for the use of a service, such as telephone calls or data usage. Usage fee is measured by the metering rule. You add usage specifications through REST APIs and while creating an offer, associate a usage specification and service specification with the product specification and specify a metering rule. For example, you can set up price of $50 for 100 GB of data usage.
Existing Price Plan: A price plan specifies how to calculate the cost of a price type configured. It has the price model, price constraints, and rules which determine the actual price. You can reuse any of your existing price plans supporting different price models across simple offers, instead of creating price plans every time you create an offer. Reusing price plans gives you the ability to perform bulk or mass update to prices.

Here's an example. Let's consider a price plan monthly subscription fee of 100$ which has a General Ledger Identifier and tax code, and is used in a mobile offer. Based on business requirements, the same monthly subscription fee could be reused in the mobile data offer. If you make a change from 100$ to 200$ in one of the price plans, both the offers will reflect the new price.

Additionally, after you have created a price plan, which also includes your financial information, you can reuse any of your existing price plans across simple offers, instead of creating price plans every time you create an offer. When you update a specific existing price plan, you perform bulk updates for pricing across offers, which use the same price plan. This helps you make updates across offers without needing you to revisit individual price plans.

As a product administrator, you can also create and define currency and noncurrency balance elements through API and use noncurrency balance elements to specify the allowance for a specific price. As a pricing specialist, you can use the desired balance elements while specifying the prices for your offer. For your price lists, you can specify the currency type, ISO codes, currency symbols, rounding mode, and decimal points, whereas for prices of your offers you could define the allowance types. Additionally, you can also define the consumption rules for the balance elements.

Here are a few examples of different simple pricing schemes:

Table 9-1 Examples of Pricing Schemes

Pricing Scheme	Example
Fixed subscription pricing	9 monthly for unlimited subscription $15 for 100 GB mail box
Usage charges for any units of measure	$1.99 per MB of consumed data
Nonservice based charges	$10 purchase fee $20 setup fee
Physical good pricing with discounts	128 GB variant of phone - $100 with 10% discount
Fixed subscription with discounts	$50 monthly with $1 discount
Usage charges with discounts	$1.99 per MB of consumed data with $0.1 discount
Termination charges	10% flat fee or balance of contract

Advanced Pricing Types

Here are the advanced pricing types available to you:

Allowance
Volume
Tiered
Attribute-based pricing

Attribute-Based Pricing

Attribute-based pricing is a combination of characteristics to formulate a price. As a pricing specialist, you can price a simple offer based on the combination of attributes or characteristics of its usage specification, product specification, customer profile specification which gives flexibility for dynamic pricing and prevents product proliferation.

Attribute-based pricing is where the price of a charge on a product offer is determined by rules which are the enumerated values of one or more attributes applied on an offer through its usage specification, product specification or custom profile characteristics. In a simple scenario, the price is based on a single attribute. For example, a recurring charge for a bandwidth product could be priced based on the bandwidth value, such as 50$ for 5 MBPS, 75$ for 10 MBPS, and so on.

In a complex scenario, the price of a charge is based on more than one attribute, where the attributes may be based on different characteristics. For example, the price of a recurring charge for a bandwidth product could be priced based on the bandwidth value in conjunction with the geographic location of the network service and the customer profile characteristics. Attribute-based pricing is provided based on specific attributes of a service specification, customer profile specification, or usage specification or a combination of the specifications. However, you can use usage specification only if the usage fee is used for the attribute pricing, while customer specification profile, product specification profile, and service specification can be used for other pricing structures, such as one-time or recurring fees.

Here's an example of a combination of customer specification profile and service specification attributes:

Table 9-2 Example of Combination of Customer Specification Profile and Service Specification Attributes

Customer Profile: Customer Type	Product Specification Bandwidth	Price	Allowance	Price Format
Platinum	10 MBPS	100$	20 GB	Per unit or fixed price
Gold	10 MBPS	100$	30 GB	Per unit or fixed price
Platinum	20 MBPS	1500$	40 GB	Per unit or fixed price

Here's an example of a combination of usage specification attributes:

Table 9-3 Example of Combination of Usage Specification Attributes

Usage Specification: Call Origin	Usage Specification: Call Destination	Price	Price Format
India	US	1$	Per unit or fixed price
India	ROW	0.9$	Per unit or fixed price

Attribute-based pricing with Allowances

Additionally, you can also add allowances with attribute-based pricing, based on a combination of customer profile specification and service specification. Here's an example, where monthly allowances are provided:

Table 9-4 Example of Combination of Customer Specification Profile and Service Specification

Bandwidth	Customer Type	Price	Allowance
10 MBPS	Gold	100$	10 GB per month
10 MBPS	Silver	120$	8GB per month
20 MBPS	Gold	130$	10 GB per month
20 MBPS	Silver	140$	8GB per month
N/A	N/A	299$	N/A

Here are a few examples of advanced pricing:

Table 9-5 Examples of Advanced Pricing Scheme

Pricing Scheme	Example
Fixed allowance subscription pricing	$50 monthly for up to 10 GB mobile data
Attribute-based pricing	You define a 128 GB variant phone to be priced at $250 and a 256 GB variant to be priced at $400.
Fixed allowance with overage	Overage is charged at a rate of $1 for every 15 minutes increment
Tiered and volume subscription pricing	$29 monthly for up to 10 accounts $25 for 10 to 100 accounts $23 there after
Multi-dimensional attribute-based pricing	128 GB phone- $100 256 GB phone- $123
Tiered usage pricing	$1 for first 10 GB $1.2 for 10 GB to 20 GB $2 thereafter
Tiered and volume discounts	$0.10 discount for 1-10 movies $0.20 discount for 11-20 movies
Effective date based pricing	$10 for Jan 1st to Mar 31st $11 from April 1st onward

Note:

Irrespective of the pricing structure that you use, simple pricing or advanced pricing, you could specify your tax codes and indicate whether your price is either inclusive or exclusive of tax. Tax codes are used by taxation systems for billing. You can have vendor-specific tax codes or simple tax codes. If you choose to use tax codes, you must load your tax codes using REST APIs and use it in the price plans.

Price Plans with Commitment Period

You can set up price plans with commitment terms for atomic offers of type service and bundle offers of type commercial, service, and package. Setting up price plans with commitment terms enables you to avoid proliferation of offers every time you want to set different prices for different commitment terms in your offer. You begin by creating a price for your offer on the pricing train stop.

The next step is to create a commitment term. A commitment term is a condition in which the product offer is sold to a customer. For example, you can set a two-year commitment period for a product offer. This effectively means that when you sell this offer, the customer has committed to this offer for a period of two years. The commitment may or may not be absolute. You can also provide early termination options for an easier exit route for the customer. Alternatively, you can set up penalty for early termination with the following options:

None
Flat: A flat fee, such as 100 US dollars or 75 euros.
Fixed Proration: A flat termination fee for a contract duration with proration percentage penalty for each remaining month in the contract. The system calculates and evenly spreads the penalty percentage across the contract duration.
Variable Proration: A flat termination fee with different proration percentages for different periods of time within the contract duration.
Balance of Contract: The balance remaining in the customer's contract.

Here's an example of Fixed Proration. Consider that you have a wireless voice service that has a contract period of 24 months and you set a proration termination penalty of 400$. Then the application determines a 4.17% penalty per month (100/24 = 4.1666%). If a subscriber terminates the service in 14 months with 10 months left in the contract period then he has to pay a prorated penalty of 10 x 4.17% x $400 = $166.80.

Here’s an example of Variable Proration. Consider that you have a wireless voice service that has a contract period of 24 months and total penalty of 400$. And you set a variable proration penalty for different periods as follows, cancelling the subscription in the months 1 to 8 carries a penalty of 10%, months 9 to 12 carries a penalty of 5%, and no penalty after 12 months. A subscriber cancelling the subscription 4 months into the contract will incur a termination fee of $400 – 4x10%x400 = 260$.

Here's an example of balance remaining in the customer's contract. A customer with a one-year commitment period with a $50 monthly fee would pay a penalty of $50 for each month remaining in the contract. A customer canceling with 5 months remaining would pay $250, and a customer canceling with 3 months remaining would pay $150.

After you have set up your commitment term, you can associate it to a price list and use it for your offer. Components in a package bundle can have their own commitment terms but can be overridden to fit the pricing and commitment needs of the package.

For simple offers: As a product manager, you can create, edit, and associate multiple commitment terms for an atomic service offer from the pricing train stop. As a pricing specialist, you can set up different prices for each of the commitment terms configured on the offer instead of creating multiple offerings for each commitment term period. Additionally, you can also set one of the terms as a default price term. Here's an example:

Table 9-6 Price Plans for Atomic Service Offer Type

Commitment Term	One-Time Charge	Recurring Charge	Usage Charge
12 Months (default)	100	150	1$ per unit
6 Months	190	200	2$ per unit

Additionally, you can also define a no terms price. The no terms price is used when there is no commitment period for an offer and you pay as you go for the service. You can define no terms in both atomic and bundle offers. Here's an example:

Table 9-7 Price Plans for Atomic Service Offer Type with and without Commitment Term

Commitment Term	Subscription Charge	Purchase fee
2 Year Term	10 USD	100 USD
No Terms	5 USD	100 USD

For bundle offers: As a product manager, you can create, edit, and associate multiple commitment terms for a bundle offer. For each of the simple offers used in the bundle offer, the terms and the prices defined in the simple offer pricing train stop is used. If you choose to, you can specify a term period for the bundle offer and based on the term that matches the simple offer, the bundle price gets determined. When the bundle price tenure doesn't match the atomic offer prices used in the bundle offer, and if you have set the no term price as the default, then the default price is used as the price for the bundle offer. Here's an example:

Product manager creates Offer A with 6 months and 12 months commitment terms; where default is the 6 month commitment term.
Product manager creates Offer B with 6 months commitment terms, as default.
Product manager creates Bundle AB with Offer A and Offer B.
Product manager modifies prices for specific or all price types.

Offer A:

Table 9-8 Price Plans for Offer A

Commitment Term	One-Time Charge	Recurring Charge	Usage Charge
12 Months	100	150	1$ per unit
6 Months (default)	190	200	2$ per unit

Offer B:

Table 9-9 Price Plans for Offer B

Commitment Term	One-Time Charge	Recurring Charge	Usage Charge
6 Months (default)	190	200	2$ per unit

Bundle AB (6 month commitment term default): Here the default term price is used as there is no 12 months tenure.

Table 9-10 Price Plan for Bundle AB (6 Months Commitment Term)

Offer Components	Commitment Terms	One-Time Charge	Recurring Charge	Usage Charge
Offer AB	N/A	380	400	N/A
Offer A	6 month term	190	200	2$ per unit
Offer B	6 month term	190	200	2$ per unit

Bundle AB (12 month commitment term):

Table 9-11 Price Plan for Bundle AB (12 Month Commitment Term)

Offer Components	Commitment Terms	One-Time Charge	Recurring Charge	Usage Charge
Offer AB	N/A	290	350	N/A
Offer A	12 month term	100	150	2$ per unit
Offer B	6 month term (product manager chooses 6 month term price to apply for 12 month term at bundle level)	190	200	2$ per unit

Alteration cases in bundle AB for a 12 month commitment term.

Table 9-12 Alteration Cases in Bundle AB

Offer Components	Commitment Terms	One-Time Charge	Recurring Charge	Usage Charge
Offer AB	N/A	280	349	N/A
Offer A	12 month term	100 (10% discount)	150	2$ per unit
Offer B	6 month term (user chooses 6 month term price to apply for 12 month term at bundle level)	190	200 (1$ discount)	2$ per unit

Alter Prices

You can alter prices for your bundle offers and if required specify the price type to which the discount or markup amount is applied. When you can perform bundle-level alteration at service bundle, package, or commercial bundle, you can specify the particular price type to which the alteration must apply.

Here are the different ways you can alter price:

Discount amount and percent: You can apply a discount to price. The discount can be an absolute or a percent of the original price. For example, if the original price was $100, and you applied a discount of $10, then the adjusted price would be $90. Similarly at the 5% discount, the adjusted price would be $95.
Markup amount and percent: You can inflate the price by an absolute amount or percentage value. For example, if the original price was $100, and you applied a markup of $10, then the adjusted price would be $110. Similarly, if you applied a markup percent of 5%, the adjusted price would be $105.
Price override: You can override the price by an absolute value. This amount becomes the adjusted price. This is applicable only for bundle product offer. You can also use price override on the components of a bundled or simple product offering.

You can use relative effectivity of price to manage scenarios such as offering zero charge for the first three months and then applying monthly fee in a product offering. You can use this option when defining price alterations for atomic offers.

You can also make these alterations limited for a period of time. In this scenario, the alterations or discounts that you apply to the base price is only applicable for the duration that you define. Outside of this period, the regular base price without the alterations are applied. The date for these alterations can be a calendar date, relative to the purchase date, or relative to the activation date.

You can also reuse the existing price alterations on atomic offers to avoid price proliferation.

Device Programs

You can use device programs to offer alternatives to your customers instead of making them pay full prices for the devices. Device programs that you can offer to your customers include Installment Plans and Leasing Options. See Device Trade In for more information.

Lease

The Lease device program enables your customers to own the latest devices and accessories at lower upfront cost using lease plans. They can use a device for the lease term period in exchange for a monthly equipment rental fee. As a product manager, for a device or accessory offer type, you can provide lease plans with an agreement and specify the lease terms that includes the return checklist for devices and accessories. You can set up a lease plan with a recurring fee. You can set up several leasing plans, based on duration, or terms. See Set Up Lease Plan for information on setting up Lease.

As a catalog administrator, you can create the return checklist template to support the return of leased devices and accessories. The template should include criteria to determine the working condition of the leased device, tasks to be performed by the subscriber before returning the device, and instructions to ship the device or return it to a store.

Installments

The installment device program enables you to provide payment alternatives to your customers. As a product manager, for a device offer, you can provide installment plans, with multiple installment terms, set prices, specify the credit approval and minimum down payment, and decide if the plan is inclusive or exclusive of tax. You can also set the default terms as well as the upgrade rules for a plan.

You can set an installment agreement against a one-time purchase fee. You can also configure any advanced pricing, such as attribute-based pricing, that may be required for down payment or monthly installments. The attribute-based selector in the attribute-based pricing section enables you to define different installment plans based on tenure, for the various entities that you choose to configure.

As a product manager, while creating a device installment plan you can specify the qualifiers such as customer type, loyalty tier, credit score, or rewards membership of customers to define their eligibility. For example, you can have a North American operator to model the installment plans based on credit score and an APAC operator to model the installment plan based on loyalty tier. See Set Up Installment Plan for information on setting up Installments.

Real-Time Pricing Scenarios and Setup

Here are a few pricing scenarios elaborated with setups.

Simple product offering with volume discount

Set up a home sensor and camera system with one-time fee and volume discount. The more the number of home sensors you buy you get volume discount on your one-time fee.

Table 9-13 Simple Product Offering with Volume Discount

Minimum Quantity	Maximum Quantity	Discount
5	10	10%
11	20	20%
21	30	30%

Simple product offering with tiered pricing

Set up a wireless data offer with usage fee and tiered pricing. The usage is measured in minutes of voice call.

Table 9-14 Simple Product Offering with Tiered Pricing

Tier	Minimum Quantity	Maximum Quantity	Price
1	0.00	5.00	$1.00
2	5.00	10.00	$0.50
3	10.00	Unlimited	$0.10

Product offering allowances

Set up a 10 GB data pack.

You must set up a recurring allowance with a one-time fee of $10 and an allowance fee of $100 with 10 GB data per month.

Product offer with effective dates

Set up a home sensor and camera system with one-time fee and volumes discount that's driven by effective dates.

Effective Period: April 01, 2020 to June 30, 2020

Table 9-15 Product offer with effective dates (April-June)

Minimum Quantity	Maximum Quantity	Discount
5	10	10%
10	20	20%
20	30	30%

Effective Period: July 01, 2020 to unlimited

Table 9-16 Product offer with effective date (July-Unlimited)

Minimum Quantity	Maximum Quantity	Discount
5	10	1%
10	20	2%
20	30	3%

Tiered pricing with effective dates

Set up a wireless data offer with usage fee and simple tiered pricing. The usage is measured in minutes of voice call.

Effective Period: April 01, 2020 to June 30, 2020

Table 9-17 Tiered pricing with effective dates (April-June)

Tier	Minimum Quantity	Maximum Quantity	Price
1	0.00	5.00	$1.00
2	5.00	10.00	$0.50
3	10.00	Unlimited	$0.10

Effective Period: July 01, 2020 to unlimited

Table 9-18 Tiered pricing with effective dates (July-Unlimited)

Tier	Minimum Quantity	Maximum Quantity	Price
1	0.00	5.00	$2.00
2	5.00	10.00	$1.50
3	10.00	Unlimited	$1.10

Set Up Simple Prices

These are the different prices you can set up for your simple offer:

One-Time Fee
Recurring Fee
Usage Fee
Existing Price Plans

Set Up One-Time Fee

Here's how you set up one-time fee:

Click Add Fee and select One-Time Fee from the drop-down list.
On the New One-Time Fee page, enter your fee name and ID.
In the Price Information section, specify the price type as Purchase or Penalty, select a price list, and the one-time price.
In the Financial Information section, select the general ledger ID, tax code, and specify whether tax is included.
In the Price alterations section, click Add Price Alterations if you choose to apply price alterations. The alterations available to you are: Fixed Discount, Percentage Discount, Volume Discount, Tiered Discount, Fixed Markup, and Percentage Markup.
Click Save

Here's an example of a one-time entry fee of $100. You can set it up as:

Table 9-19 Example of One-time Entry Fee

Name	Price
Initial Setup Fee	10

Set Up Recurring Fee

Here's how you set up recurring fee:

Click Add Price and select Recurring Fee from the drop-down list.
On the New Recurring Fee page, enter your fee name and ID.
In the Price Information section, select a price list, select the period, and the recurring price.
In the Financial Information section, select the general ledger ID, tax code, and specify whether tax is included.
In the Price Alterations section, click Add Price Alterations if you choose to apply price alterations. You can reuse the existing price alterations on atomic offers to avoid price proliferation.
Click Save.

Here's an example of a recurring monthly subscription fee of $10 per month. You can set it up as:

Table 9-20 Example of Recurring Monthly Fee

Name	Price	Period
Monthly Subscription Fee	10	Month

Set Up Usage Fee

Here's how you set up usage fee:

Click Add Price and select Usage Fee from the drop-down list.
On the New Usage Fee page, enter your fee name and ID.
In the Price Information section, select a price list, specify the UOM, price format, and the usage price. Depending on what you selected as the price format, this is either a fixed price or price based on the unit of measure.
In the Financial Information section, select the general ledger ID, tax code, and specify whether tax is included.
In the Price Alterations section, click Add Price Alterations if you choose to apply price alterations. You can reuse the existing price alterations on atomic offers to avoid price proliferation.
Click Save.

Here's an example if your plan charges $0.10, per minute of call. You can set it up as:

Table 9-21 Example of Usage Fee based on Specific Plan

Name	UOM	Price	Price Format
Per Minute Call	Minute	0.10	Per Unit

Existing Price Plans

A price plan specifies how to calculate the cost of a price type configured. It has the price model, price constraints, and rules which determine the actual price. You can reuse any of your existing price plans supporting different price models across simple offers, instead of creating price plans every time you create an offer.

When you search for a price plan, the results are based on the product type that you select. Here's how you can go about it. On the Pricing page:

Click Add Price and select Include Existing Fee from the drop-down list.
On the Add Existing Fees page, search for an existing price plan or select a price plan from the available list.
Click Add.

Set Up Advanced Prices

These are the different advanced prices you can set up:

Allowance
Volume
Tiered
Attribute-Based Pricing

Set Up Allowance Prices

The non currency balance element represents the allowances that can be configured in a simple offer. Based on your business needs you need to identify the allowances types and create the respective non currency balance elements for these allowance types. For example, free minutes as an allowance type needs to be configured as a non currency balance element.

You can create and manage your balance element using REST APIs. See REST API Reference for Launch Cloud Service.

You can set up your allowances once you have created your simple price structure. The final price is calculated taking these allowances into considerations. You must select the one-time fee to which you need to apply advanced prices.

From the Advanced Pricing Model drop-down list, select Allowance.
In the Allowance section, select the allowance type.
Enable the Share Allowance option, if you choose to share your allowance.

Note:

You can configure an overage only for an allowance by using the Apply Overage option. Enable this option, if you choose to apply overage to the price.
Specify the start and end dates, allowance quantity, period quantity, period units, and click the tick icon.
Click Save.

Your allowance is now created and displayed in the allowance section on the Price page.

Set Up Volume Prices

You can set up your volume pricing once you have created your simple price structure. You must select the one-time fee to which you need to apply advanced prices.

From the Advanced Pricing Model drop-down list, select Volume.
In the Volume Pricing Ranges section, specify the start and end dates, name, minimum quantity, maximum quantity, price, price format, and click the tick icon.
Click Add Range, if you want to add more volume prices.
Click Save.

Your volume prices are now created and displayed in the Volume Pricing Ranges section.

Set Up Tiered Prices

You can set up your tiered prices after you have created your simple price structure.

From the Advanced Pricing Model drop-down list, select Tiered.
In the Tiered Pricing Ranges section, specify the start and end dates, name, minimum and maximum quantity, price, price format, and click the tick icon.

If you set up a period, then the tier is effective in that period. By default, the tier is effective for the duration of the product offer. Also, if you select fixed fee, then the price is constant for the tier. If you select per unit, then price is calculated, based on the consumption of units in the tier.
Click Add Range, if you want to add more tiers.

Your tier is now created and displayed in the Tiered Pricing Ranges section.

Set Up Attribute-Based Pricing

You can set up your attribute-based prices when you are creating your simple price structure.

From the Advanced Pricing Model drop-down list, select Attribute-Based.
1. In the Attribute-Based Pricing section, enter a pricing model name, description, and select the entity specifications, for example, Product Specification, Usage Specification, Service Specification, or Customer Profile Specification.
2. Specify the allowance details and the start and the end date.
Enable the Share Allowance option, if you choose to share the allowance, and specify the allowance type. You will be asked to specify the allowance quantity, allowance duration, and period units when you add the attribute based price for all the variants you include for pricing.
To apply overage, enable the Apply Overage option and specify the overage price format. You will be asked to specify the overage price when you add when you add the attribute based price for all the variants you include for pricing.
Click Add Attribute-Based Price.
- Select the variant attribute for which you are specifying the price from either the SKU Template drop-down list or any other attribute that makes a variant with a different price. This would be a combination of characteristics that uniquely identifies the variant for which you want to set the price.
- Specify the attribute details of the variant, such as brand, price tag, price format, and price.
- If you enabled share allowance, then specify the allowance quantity, allowance duration, and period units.
- If you enabled overage, then specify the overage price.
- Click Add.
To add attribute based prices for more variants repeat this step.
Click Save.

Set Up Price Alterations

Here you can add volume discount, fixed discount, percentage discount, tiered discount, fixed markup amount, percentage markup amount, and attribute based alterations to the prices that you have set up.

In attribute based alterations, you can apply discounts based on the attributes of the atomic product and also specify rules when the adjustments and alterations apply. For example, customers of type gold class get a 10% discount on a specific device variant in the month of June. Another example, a device variant with the color attribute as red gets a 5% discount.

Set Up Price Alterations for atomic offers

The following discount and markup options are available:

Fixed discount: A fixed amount is deducted from the base price.
Percentage discount: An amount equivalent to the percentage is deducted from the base price.
Volume discount: A specific amount is deducted for a range of values. You can also add a simple or a tiered volume discount.
Fixed markup amount: A fixed amount is added to the base price.
Percentage markup amount: An amount equivalent to the percentage is added to the base price.
Attribute-based alteration: Specify the discounts and limit the discounts applied based on the product attributes selected and you can apply rules to decide when the discounts apply. The attributes can come from product specification, service specification, usage specification, custom specification, and customer profile specification.
Price override: The adjustment value is used as the price, overriding the original price. All other prices and adjustments are ignored.

As a marketing manager, irrespective of the price alteration type that you use, fixed or markup, you could specify your General Ledger ID and tax codes and indicate whether your discount or markup is either inclusive or exclusive of tax. If you choose to use tax codes, you must load your tax codes using REST APIs and use it in the price alterations. This helps the billing system to take care of the taxation and accounting.

To specify either a fixed or percentage discount:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, select either Fixed Discount or Percentage Discount, depending on your discount type.
Enter the following information:
1. Enter the discount amount or discount percentage.
2. Enter a start date and end date.
3. Select a General Ledger ID and Tax Code from the respective drop-down lists.
4. Enable or disable the Tax Included option.
5. Click Add.

To specify a volume or a tiered discount:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, click either Add Tiered Discount or Add Volume Discount, depending on your discount type.
In the Add Volume Discount or the Add Tiered Discount section, enter the following information:
1. Enter effective start and end dates. If you set up a period, then the tier is effective in that period. By default, the tier is effective for the duration of the product offer.
2. Select a General Ledger ID and Tax Code from the respective drop-down lists.
3. Enable or disable the Tax Included option.
4. In the Range section, specify a name, minimum quantity, maximum quantity, discount amount, price format, and click the tick icon.
5. To add more rows, click Add Range.
6. Click Add.

To specify either a fixed markup or a percentage markup:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, click either Fixed Markup or Percentage Markup, depending on your markup type.
Enter the following information:
1. Enter the markup amount or markup percentage.
2. Enter a start date and end date.
3. Select a General Ledger ID and Tax Code from the respective drop-down lists.
4. Enable or disable the Tax Included option.
5. Click Add.

To specify an attribute based alteration:

Go to the Price alterations section of the fee type.
From the Add Price Alterations drop-down list, select Attribute-based Alteration.
In the Identifying information section:
1. Provide the name, ID, and description.
2. Select the attributes you want to base the price alteration on. You can select from these specifications: product, service, usage, customer profile, and custom profile.
In the Attribute-based Alteration section:
1. Click Attribute-based Alteration.
2. Select the operator you want to apply to each of the selected attribute.
3. Click Add, the alteration row displays.
4. Specify the attribute values, the adjustment type and amount, and click Save.
  To add more attribute based alterations, repeat steps c and d.
In the Effective Period section, specify the start and end dates for the alteration and when to apply the alteration.
In the Financial Information section, specify the general ledger ID and tax code from the respective drop-down lists.
Click Add.

Set Up Price Alterations for bundle offers

Here you can add fixed discount, percentage discount, fixed markup amount, and percentage markup amount to the prices that you have set up. Bundle price alterations are done at the package level or individual fee level. At feel level, all four options are available. At the package level, you only have a percentage discount and percentage markup. Here you can apply the alteration for a particular fee type one-time, recurring, usage, or all. In case you apply a discount to the one-time fee at the package level then this discount is applied to all one-time fees and percolates to the levels below.

The following discount and markup options are available:

Fixed discount: A fixed amount is deducted from the base price.
Percentage discount: An amount equivalent to the percentage is deducted from the base price.
Fixed markup amount: A fixed amount is added to the base price.
Percentage markup amount: An amount equivalent to the percentage is added to the base price.

Consider the following when you perform a price alteration:

You can apply price alteration at the aggregate option level for a package.
You can apply price alterations at the atomic offer's attribute-based price group level for service, commercial, or package bundles.
You can apply price alterations at the service bundle level configured inside a package.
You can apply price alterations at the atomic offer fee level inside a package.
You cannot apply price alterations for an option group level that is part of a bundle, commercial, or package.

Note:

Any alteration configured at the top level does not percolate down to sub-levels.

To specify either a fixed or percentage discount, or markup:

In the Price alterations section, select the fee type: One-time, Recurring, Usage, or ALL. Then click the corresponding Add {fee type} Price Alternation button.

Note:
The bundle price roll-up happens based on the fee type you select.
From the Add Price Alterations drop-down list, specify your discount type or markup type.
Enter the following information:
1. Enter the discount or markup amount, or discount or markup percentage.
2. Enter a start date and end date.
3. Select a General Ledger ID and Tax Code from the respective drop-down lists.
4. Enable or disable the Tax Included option.
Click Add.

Set Up Price Plans with Commitment Period

You can set up price plans with commitment terms for atomic offers of type service and bundle offers of type commercial, service, and package.

You begin by creating a price plan for your offer.

The next step is to create a commitment term. To set up commitment terms:

From the Commitment Terms drop-down list, select Add Commitment Term.
On the New Commitment Term page, enter the name, commitment period and unit. The combination of these two fields define the commitment schedule, for example a commitment of 2 years, where the commitment period is 2 and the unit is years.

Note:
Steps 1 and 2 above apply to atomic offers. Steps 1 to 6 apply to bundle offers.
In the Termination section, optionally, enable the Allow termination option.
If you have enabled the early termination option, then you must configure the penalty associated with the termination.
Select the penalty type.
Optionally, add a grace period to the early termination rule. For example, if you configure a grace period of 2 weeks, then the customer won't be charged a penalty till 2 weeks post termination.
Click Add.

After you have set up your commitment term, you can associate it to a price list and use it for your offer.

Here's how you can associate price plans and commitment period for an atomic offer:

Select the ellipsis against the price list with which you want to associate the commitment term.
Click Set Commitment Term.
On the Set Terms for Price List dialog box, search and select the term that you want to associate your price list with.
Click Add. The commitment term now appears on the price list.
Click a specific commitment term to see the price associated to it.
Click the edit icon to modify the term price for a price roll up, as required.
Click Save.

The modified term price now appears for the price list.

Here's how you can associate price plans and commitment period for bundle offers:

Select the ellipsis against the price list.
Click Set Commitment Term.
On the Set Terms for Price List dialog box, search and select the term that you want to associate your price list with.
Click Add. The commitment term now appears on the price list.
Click a specific commitment term to see the price associated to it.
Click View or Edit Alterations to modify the term price for a price roll up, as required.

The modified term price now appears for the price list.

Set Up Lease Plan

You can set lease plans after you have set up the one-time fee for your device or accessory offer type for the configured price list. On the price list that you have created, select the lease option and perform the following steps:

Specify the lease term duration as fixed or the range of the lease term duration.
Specify the term information: name, lease deferred amount, down payment, number of payments, the frequency of payments and specify if the lease can be terminated earlier than the lease duration.

Note:
For devices with variants, the lease deferred amount, full price per unit, and down payment fields are presented in the Attribute based lease information section, with a separate row of lease payment information for each variant.
Specify the grace period duration and units of the duration.
In the Attribute based lease information section, each row represents the lease information for each variant of the device. Edit each variant and provide the lease deferred amount, down payment, and payment for each period.
In the End of lease terms section:
1. Specify the terms of returning the device.
2. Specify the terms of continuing to lease the device.
3. Specify the price of buying out the device at the end of the lease term.
If you want to allow upgrades, enable the Allow Upgrade option and specify the threshold conditions for an upgrade to be applicable:
1. How the minimum threshold for upgrade must be measured.
2. Minimum threshold for upgrade.
In the Return checklist section, click Add Return Checklist to select and attach your installment agreement.
In the Lease agreement section, click Add Lease Agreement to select and attach your installment agreement.
To add more lease terms, click Add Term. This option is not available for devices with variants.
Click Update.

Set Up Installment Plan

You can set installment plans after you have set up the one-time fee for your device or accessory offer type.

You can create different variants of device installments with conditions, such as credit score, loyalty tier, rewards membership, and so on. You create an installment plan using the installment option in the created price list.

On the Installment Plans page, you specify the details including the tenure as a duration or a range having a minimum and maximum value, the frequency of payment, and so on depending on your business requirement.
If you have specified that the installment plan is eligible for upgrade, then specify:
1. How the minimum threshold for upgrade must be measured.
2. Minimum threshold for upgrade.
Attach your installment agreement and specify the name of the duration, number of installments, and select the tick icon.
Save the details.

Note:

If you want to add additional qualifiers, you can do so using REST APIs for customer profile specification. Qualifiers are created as characteristics of a customer profile specification. See REST API Reference for Launch Cloud Service.