Creating the pricing for subscription products

How to set prices for subscription products

Defining your prices depends on what type of product you are creating. Subscription Products are defined by setting the subscription period and recurring fee.

Creating subscription prices

For each subscription product, you can freely define the applicable terms and pricing.

In the terms section, define the full length of the subscription duration as the commitment period and determine how often your customers will be charged as the respective payment cycles. For now, payment cycles are pre-defined to be every 1 month – in the future, you can define your payment cycles depending on your business requirements.

Select under Auto renewal whether the subscription will end automatically after the chosen commitment period (select None), of it the subscription will afterwards be renewed automatically every month (select Monthly).

Once you have set up the terms, set your prices for each commitment period in the price section below. Fill in the "Price (currency)" column with the price you charge for your product for each payment cycle in the respective commitment period. In the column "Committed total (currency)" the total revenue per commitment period is calculated.

Here is an example: A subscription for 2 months will be charged 50.00 € each month, thus resulting in a total revenue of 100.00 € for one sold subscription. If a customer however purchases a subscription for one entire year, the monthly fee will just be 30.00 €, resulting in a total of 360.00 € for the entire year.

Commitment period

Commitment period refers to the minimum duration of a subscription order, e.g. a one year commitment period means that a customer's payment card will be charged on a monthly basis for one year.

Removing the stored payment card from the subscription order is not possible. In an instance that a payment card expires sometime within the commitment period, the customer will receive an automated message that the monthly subscription payment has failed and an update is required.

Editing the subscription pricing table

In order to modify the price of a subscription product, simply apply the changes to the pricing table. The updated price will be charged to all future payment cycles.

Note: If a customer has subscribed to a product before the price adjustment, the difference between the initial payment(s) and the updated price won't be charged.