How to Create a Volume SKU
Volume pricing models are prevalent in the business-to-business space, where the seller wants to incentivize the buyer with discounts when they buy more products or services at the same time. This is similar to the the Credit pricing model, except there’s usually no need to set rules regarding rolling over unused units.
Pre-reqs
Before we begin you should decide if your product or service will be using a one-time, monthly or yearly pricing strategy. Meaning will you be charging your users one time, once a month or once a year and using the period as the limit for rolling over leftover credits, etc.
This is only for a SKU’s pricing and not it’s billing. RevOps provides a Billing Frequency term to allow you to bill customers at a different interval than your pricing.
1. Create a new SKU
To create a Credit priced SKU, you need to start by going to the SKUs settings page (Hover on Settings, click the 1st item in the list, SKUs). Once there, create a new SKU using the Create SKU button.
In the SKU creation wizard first define a SKU name.
In the next step select Usage Type: Prepaid and Pricing Model: Tiered.
For Pricing Schedule select:
- One time - if you are charging one-time price
- Month - if you are charging a monthly price
- Year - if you are charging an annual price
In the next step, Configure pricing by providing the Price per unit for all your Tieres associated with a SKU. If you only have 1 pricing tier, simply set the Price per unit value for that tier and click Save.
If you have multiple tiers, you can add more by copy-pasting your values directly from an Excel sheet or by following next guides:
- Click on the blue plus button
- Update the minimum and maximum 1uantity values
- Update the Price per unit value
- Repeat steps 1 - 3 for each of the tiers in your SKU’s pricing model.
Click the More Options button to reveal the following sections:
- List price & quantity
- Currency and Unit Name
- Number of allowed decimal places
Click Save to save and create your SKU.
2. Fill out details
Once SKU is created you will be redirected to SKU Detail/Edit page where you can review all provided information or continue editing fields not surfaced in SKU creation wizard. Continue filling in all relevant information for your SKU. The SKU Name will be used only within RevOps while the Line Item Title will be what your customer sees. Include any specifying language in the Description field, like how overage is handled for this particular SKU.
3. Save the SKU
After you’re happy with how you’ve set up your SKU, scroll to the bottom of the page, and click the Save button in the bottom right corner.
If you have Salesforce or HubSpot connected to your Workspace, confirm that the respective Salesforce Integration or* HubSpot Integration tabs have their IDs fields automatically filled in.
Use the SKU
To start quoting, head to RevOps, and click on the Create Deal button in the top right corner. On the deal, click the Add SKUs button to create a new line item with your new credit-based SKU. Click the Done button to create a pricing table, titled "Subscription" by default, with your SKU as a line item.
To learn more about how to adjust the display of this table, take a look at this article.
Now you can adjust the Quantity sold and apply a Discount if appropriate. Try adjusting the Quantity to different tiers. As you raise or lower the Quantity you will see that the "active" tier and line item's price change. You can also click the Show pricing tiers dropdown and view what how the tiers are configured.
