3 ms·
Tomasz Tunguz wrote a nice piece about the 2-part tariff: http://tomtunguz.com/three-part-tariffs/ http://tomtunguz.com/three-part-tariffs/ Actually, he mentio
by caffeinatedwes 9y ago
Tomasz Tunguz wrote a nice piece about the 2-part tariff: http://tomtunguz.com/three-part-tariffs/ http://tomtunguz.com/three-part-tariffs/
Actually, he mentions that academics argue that 3-part tariffs may be the most optimal.
From his article:
"Linear Pricing (LP) - Each analytics event costs $0.10."
"2 Part Tariff (2PT) - The analytics software has a base platform fee of $10,000 and each analytics event processed by the system costs $0.10 more."
"3 Part Tariff (3PT) - Again, the software has a base platform fee but the fee is $25,000 because it includes the first 150k events are free. Each marginal event costs $0.15."
It can be a pain to implement "tariffs" on the billing system side, but it can be well worth it in the end. Props to you all at Canny for pushing through.
BTW, if anyone is interested in building tariff/metered billing into their product, you might want to check out Cheddar's Billing API:
https://gtchdr.com/2CjFrpv https://gtchdr.com/2CjFrpv