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Tiered Usage

Last Updated: Aug 28, 2020

Tiered pricing can also be set on allocation buckets to handle scenarios where the pricing rate changes based on usage during that period; for instance, first 1,000 API calls charged at £0.10 per instance and 1,001 – 10,000 charged at £0.07 per instance.

Tier Thresholds

Thresholds can be defined on bucket allowances to handle this scenario. Just with the tiered MRC scenario, there are no limits on the number of thresholds that can be set. Furthermore, the last tier can be set as an uncapped overage tier to handle scenarios where there is no limit to the amount of overage that can be charged. Or the last tier can be configured to endlessly repeat over and over again.

A single rate plan can be associated with each threshold. The rate plan defines the usage rates the customer would pay when in that tier. One flat fee is allowed per threshold. The flat fee is charged once the usage for that period crosses that threshold.

For example, a business may offer a data usage service where their customers pay for their data in blocks of 500 MB. If they use 10 MB, it will be treated as if they use 500 MB. The tier flat charge can be leveraged to set flat charges based on data blocks. A combination of flat charges and rate plans per tier can be configured.

Threshold Notifications

Tier threshold notifications can be configured for each tier in an allocation bucket. When the tier threshold is exceeded an notification can be triggered to notify either a webhook integration or send an email to a user of the billing system.