What is tiered pricing in SAP CEC-SAL-SB - Subscription Management and Billing?

SAP Term: tiered pricing

• Component: CEC-SAL-SB

• Component Name: Subscription Management and Billing

• Description: A usage-based pricing model that defines prices for usage tiers. In this model, the applicable price per unit that is defined for each usage tier is applied to the actual usage volume within that tier. The prices for each relevant tier are added to calculate the price for the entire usage volume. Tiered pricing typically defines decreasing prices per unit for increasing usage volume.

Smart SAP Assistant

• Key Concepts: 
  Tiered pricing is a pricing model used in SAP CEC-SAL-SB Subscription Management and Billing. It allows customers to purchase subscriptions at different levels, each with its own set of features and benefits. The tiers are typically based on the amount of usage or the number of users. The higher the tier, the more features and benefits are included. 
  
  How to use it: 
  Tiered pricing can be used to offer customers different levels of service at different prices. For example, a customer may choose to purchase a basic subscription for a lower price, or they may choose to purchase a premium subscription for a higher price that includes additional features and benefits. 
  
  Tips & Tricks: 
  When setting up tiered pricing, it is important to consider the needs of your customers and what features and benefits they are looking for. It is also important to consider the cost of providing each tier and how much you can charge for each tier without pricing yourself out of the market. 
  
  Related Information: 
  For more information on tiered pricing in SAP CEC-SAL-SB Subscription Management and Billing, please refer to the official SAP documentation.