As if multi-tiered subscription recurring prices were not complicated enough, many businesses are also using consumption-based pricing.
The consumption-based pricing charges customers per unit of usage instead of a fixed recurring rate. The amount billed is determined based on the amount of service or product consumed. Per-usage pricing is quite often used in combination with recurring prices.
Consumption-based billing is used by companies that can accurately break down their offering into small, consumable chunks.
- Utility companies
- SaaS companies
Usage units can be user seats, time used, API calls, miles driven, etc.
Ahref, which offers SEO tools, has three usage price dimensions: user seats, projects, and crawl credits. And the S3 service on Amazon gives us an example of multiple usage prices, each with tiered pricing. You can see that the cost per GB storage consumed is different for the first 50TB, the next 450TB, and after 500TB.