In modern business, companies are constantly experimenting with their pricing strategy to support their growth and changing market conditions. In the world of subscriptions, pricing continues to be a focus to optimize revenue and ensure subscribers are getting the value they are paying for. Recurly has enabled our merchants to experiment using different plans with a fixed price per unit. This works well for purchases with lower quantities but leaves the opportunity to discount and upsell subscribers to higher quantities. 


New pricing models enable greater flexibility

Today, we are excited to announce the release of three new quantity-based pricing models: Tiered, Volume, and Stairstep. These quantity-based pricing models enable flexibility for our merchants to offer bulk discounts, including quantities with overage charges, minimum commitments, and many other pricing strategies.

Here are the pricing models and some examples of how they can be used. 

  • Tiered –


    each unit is charged based on the price of its corresponding tier.

    • An Office Services company could charge $1 for the first 100 documents; all documents after the first 100 are $.50 each. 

  • Volume


    – all units are charged based on the price of the highest tier reached.

    • A screen printing t-shirt company could charge $10 for each t-shirt.  If a subscriber buys more than 20, the cost of each t-shirt becomes $9.

  • Stairstep


    – charge a fixed price based on the highest tier reached. 

    • A SaaS company could charge a fixed fee based on the range of seats a subscriber buys. 1-10 are $50, 11-20 are $100, 21+ seats are $150. Regardless if a subscriber buys 25, 30, or 100 seats, they will pay $150. 

There are significant business improvements that can come from these pricing models: Enterprise pricing, simplifying operational setup, standardizing rack rate pricing, and last but not least, charging based on your key value metrics. Determine the most important challenges your company helps solve for your subscribers and align your pricing accordingly. Continue experimenting with price and billing models to find the offering that makes sense to your subscribers. If you find that most of your subscribers are paying for your most-expensive offering, there might be an opportunity to upsell. 


Wrap Up 

Quantity-Based pricing is another example of Recurly’s continuous commitment to providing our merchants with the most flexible tools to improve their business model. Recurly sees a bright future for our merchants by aligning their product offerings to the value their subscribers receive. To learn more, please contact us today by reaching out to our Sales or Support teams. To learn more, read our docs.