Option Types

Welcome to the "Options" section. Options are key to defining products and services for plans. They are essential for creating the pricing models you want to offer. Let's take a closer look at the functionality of options and how you can create them in the blink of an eye.

What is an option and what different option types exist?

Options are part of a plan. They determine how products or services will be billed. Options can be one-time, recurring or usage-based. Each option type has its own characteristics that define the billing process. Learn more about the different option types and their functions:

1. One-time option
A one-time option is a product, service, or fee that is billed only once in a given plan. For example, this may be a setup fee or a registration fee. This option type is usually billed at the beginning of a contract.

2. Recurring option
A recurring option is a product, service, or fee that is billed each billing interval of the assigned plan. For example, this can be a monthly or annual subscription fee. The billing interval can be configured directly in the plan.

3. Usage-based option
A usage-based option is a product, service or fee that is billed whenever the customer makes a usage-based purchase. Usage can be charging for a car, parking, or mobile data usage. There are three different types of usage-based options: contingent, tier option and volume option. These option types form the basis for individual and flexible pricing models.

Get to know the three usage-based option types:

A. Contingent option
The "contingent option" can be considered a stair-based pricing model that allows setting fixed prices for different stair steps. For example, parking a car is charged for each started hour. If one hour costs 0,50€ and the first hour is free, parking for 2:43h will be billed with 1,00€. Parking for 3:15h will be billed with 1,50€.
There is also the possibility of creating contingent tiers within this option. Let's play this through with the same parking example of 3:15h, but with a contingent tier option included: first hour is free, hour 2-3 costs 0,50€/ hour and hour 4-x costs 0,40€/ hour. The billed price would be €1,40 ((1€0,00)+(2€0,50)+(1*€0,40)).

B. Tier-based option
For the "tier based option" you set unit prices per tier. These tiers serve as the billing basis and have to be fulfilled in the specified order. For example, charging a car costs €0.17/kWh for the first 100 kWh and anything beyond 100+ kWh costs €0.13/kWh. Thus, charging 400 kWh will be billed with €56 ((100 kWh x €0.17=€17)+(300 kWh x €0.13=€39)).

C. Volume-based option
The "volume-based option" allows to set different unit prices per level, using only the level of consumption to calculate the final price. For example, level 1 for charging a car is 0.17€/kWh for 1-100 kWh, level 2 is 0.13€/kWh for 101-500 kWh, and level 3 is 0.10€/kWh for 501+ kWh. Charging 400 kWh will cost 52€ (400kWh x 0,13€).

For usage options you can also configure if those usages should be rated individually or together via the usage pooling marker.