With the move to a subscription economy, businesses need a way to generate invoices that accurately reflect pricing and consumption over a defined period. Available only to NetSuite users, NetSuite SuiteBilling helps companies streamline billing operations, providing real-time visibility into billing and financial activity. From consolidated invoicing, automated rating processes, and support of multiple pricing models, SuiteBilling provides transparency around all billing activities. Additionally, we can say that SuiteBilling was tailored for Subscription-based billing where usage fluctuates (metered billing). The ability to add and remove products to a subscription is equally useful.
- Flexible Pricing Plans:
NetSuite allows standard and customer-specific price plans based on volume, tiered and flat pricing.
Flat Pricing: Charge customers the same value each billing cycle.
Volume Based Pricing: Based on consumption or entitlement where the highest volume tier unit rate reached is applied to the entire quantity to charge. Tiered Pricing: In this method, the rate for each unit of consumption or entitlement tier is applied to a specific range. The total end rated value is comprised of varying per unit rates to achieve the final amount to charge.
Key differences between tiered pricing vs volume pricing
There is often some confusion between tiered pricing and volume pricing because they are both based on a quantity discount. The subtle difference is all down to the unit thresholds, which makes a difference in the customer’s total discount.
With tiered pricing, the product or service is priced for the range (or segment) in which it’s included. The way the discount works within a tiered pricing strategy is that the price per unit decreases once each quantity within a tier has been sold.
Using the same example as above, if a customer were to choose to purchase a number of units within the third tier for 5-9 units, the first unit would be at standard price ($200), the following 2-4 units would be at a discounted rate ($170), and the units purchased within the 5-9 range would be at a further discounted rate ($160).
With volume pricing, the amount of discount is still determined by the number of units purchased by the customer. However, the discount is applied to all units. The greater the demand for your product or service, the greater the discount on each and every unit within the set price ranges.
Say a customer of yours purchases 6 units . If you were using the tiered pricing model, your sale would total at $1,030 ($200 + (3 x $170) + (2 x $160), whereas if you were using the volume pricing model, the total sale would come in at $960 (6 x $160).
- Streamlining Billing Process:
With NetSuite SuiteBilling, an entity can attain complete automation of its billing process. SuiteBilling supports subscription models from evergreen to traditional time-based (e.g. 1-year, 3-year). Changes to subscriptions such as upsell, down sell, suspend, and terminate are easily managed. Revenue Leakage is reduced with automated renewals. SuiteBilling can help you with automated renewals process reducing the hassle of needing to revisit each and every contract for renewal.
- Managing subscription Lifecycle:
You can manage subscription lifecycles of all your services with a few clicks! Right from the creation of Subscription items, creation of orders, change orders to dynamic revenue and billing reports, you can do it all with SuiteBilling.
Change Orders SuiteBilling allows organizations to schedule and automate changes to subscriptions. Change orders provide the ability to schedule an immediate or future-dated change to pricing and/or quantities on subscriptions. Eliminate the need to manually monitor and track customer subscription changes. With SuiteBilling, these changes can be recorded at the time they are identified and will be active upon reaching the effective date set on the change order
Customer-Specific Pricing and Discounting SuiteBilling provide the ability to create both common pricing templates and customized scenarios to support customer-specific deal negotiations and contracts. Generic subscriptions can be created and used for all customers or a specific subset. Customized subscriptions built off alterations to existing subscriptions, or net-new, enable users to create specific pricing and contract agreements for customers, including specific discounting rules per item in the subscription.
- Powerful rating engine to automate as usage/ consumption billing:
Flexible options give businesses the choice of billing subscriptions as either one-time charges or recurring fees, either in-advance or in-arrears. With multiple rating models, companies can create subscriptions that capture setup fees, license counts, and variable consumption all in one step. The combination of easy subscription set up and maintenance and flexible rating models significantly increase billing process efficiency.
- Seamlessly consolidate charges from multiple subscriptions:
Reporting Real-time reporting provides quick and easy insight into common billing and financial data, including monthly recurring revenue, total contract value, and customer churn.