Volume pricing in Zoho Billing is a quantity-based pricing model where the total number of units purchased determines which single price per unit applies to the entire quantity. Unlike tiered pricing (which applies different rates to different quantity ranges), volume pricing applies one rate to all units once the quantity crosses into a given tier. The more you buy, the lower the per-unit price across the board.
If the pricing tiers are: 1-10 units at INR 500 each, 11-50 at INR 400 each, and 51+ at INR 300 each, a customer subscribing to 60 units would pay 60 x INR 300 = INR 18,000 total under volume pricing. The lower rate applies to all 60 units, not just those above 50. This is in contrast to tiered pricing, where the first 10 units would still be priced at INR 500.
Volume pricing creates a strong incentive for customers to commit to higher quantities since crossing a tier boundary reduces the cost of every unit, not just the additional ones. It is commonly used by SaaS businesses targeting enterprise customers or for products where the vendor’s unit cost decreases significantly at scale and those savings can be passed to the customer.
Yes. Zoho Billing’s invoice for a volume pricing plan shows the quantity, the applicable tier rate, and the total amount. The customer can see which pricing tier their quantity fell into, making the discount transparent. This clarity helps customers understand the benefit of their purchase volume and reinforces the incentive to maintain or increase their subscription quantity.
Yes. If a customer reduces their quantity from 60 to 8 units under a volume pricing model, they move from the 51+ tier (INR 300 per unit) to the 1-10 tier (INR 500 per unit), and their per-unit cost increases. The total bill may be lower due to fewer units, but the rate goes up. Customers should be informed of this dynamic before reducing their subscription quantity.
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