> ## Documentation Index > Fetch the complete documentation index at: https://docs2.zenskar.com/llms.txt > Use this file to discover all available pages before exploring further. # Matrix pricing ## Concepts **Matrix pricing** is a strategy that uses two different factors to determine a price. While simpler models only look at "how much" a customer uses, a matrix allows you to change the price based on a second detail, such as the customer's geographic location or their subscription tier. ### The logic of dimensions Matrix pricing is a **2-Dimensional** model. It relies on two independent factors: **Quantity** (Dimension 1) and a **categorical attribute** (Dimension 2). Think of this like a **pricing grid**. To find the correct rate, you follow a column (for the quantity) and a row (for the attribute) until they meet. The point where they intersect is the specific price applied to that customer's usage. ### SaaS example: Cloud log storage A monitoring platform charges for log storage, but the cost of data centers varies by world region. The platform uses a matrix to apply different volume discounts based on where the data is stored. **The pricing grid:** | Region (Dimension 2) \| Usage (Dimension 1) | **0 – 500 GB** | **501 – 2,000 GB** | **2,001+ GB** | | ------------------------------------------- | -------------- | ------------------ | ------------- | | **US-East** | \$0.10 / GB | \$0.08 / GB | \$0.05 / GB | | **EU-West** | \$0.12 / GB | \$0.10 / GB | \$0.07 / GB | | **Asia-Pacific** | \$0.15 / GB | \$0.12 / GB | \$0.10 / GB | **The intersection calculation:** If a customer in **EU-West** ingests **1,500 GB**, Zenskar navigates the matrix to find the exact rate: 1. **Identify the row:** The customer is in the "EU-West" category. 2. **Identify the column:** The "1,500 GB" usage falls into the 501–2,000 GB bracket. 3. **Find the intersection:** The rate at this meeting point is **\$0.10 / GB**. *** ## Get started: Configure your matrix product *This tutorial walks you through building a global matrix template in your Product Library.* 1. **Navigate to the Library:** Go to **Contracts** > **Products**. This is your central hub for defining reusable pricing blueprints. 2. **Create a Standalone Product:** Click **+ CREATE NEW** and choose Standalone Product from the dropdown. The Create Standalone Product page will appear. Fill in the required details and click **Save & Proceed** at the bottom right. 3. **Open Price Details:** You will be redirected to the Price Details page. Click **+ Add Price** to configure pricing for the product. 4. **Select Matrix Pricing Model:** In the Pricing Model dropdown, select **Matrix Pricing**. 5. **Configure Dimension and Save:** Click **+ Add Dimension** to add the required dimensions. Enter the **Dimension name**, **Display Alias**, and the unit prices for each combination. Once complete, click **Save**, then click **Done** on the Price Details page. ## How-to: Add matrix product to a contract ### 1. Via Contracts 1. Open the target contract in **Contracts** > **Contracts**. 2. In the Summary tab, click **+ ADD PRODUCT V3**. 3. Search for and select your configured matrix product. 4. Click **ADD PRODUCT**. You will be redirected to the Summary page. Click **Publish**. ### 2. Via Customer 1. Open the target customer in **Customers**. 2. Go to Contracts and click **+ CREATE CONTRACT**. 3. In the Summary tab, click **+ ADD PRODUCT V3**. 4. Search for and select your configured matrix product. 5. Click **ADD PRODUCT**. You will be redirected to the Summary page. Click **Publish**. *** ## Reference ### Technical specifications | Attribute | Specification | | ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | | **Dimensionality** | **2-dimensional (bivariate)** | | **Math formula** | ***P = rᵢⱼ × q*** (where ***rᵢⱼ*** is the rate resolved from the intersection of row ***i*** and column ***j***) | | **Logic type** | **XY lookup function**: The price is determined by intersecting a usage quantity with a specific categorical or secondary numerical attribute. | | **Boundary behavior** | **Lower-inclusive**: For numerical axes, a value exactly at a threshold belongs to the tier starting at that value. | | **Calculation engine** | **Coordinate resolution**: The engine identifies the specific "cell" in the matrix based on two distinct metadata inputs and applies that cell's rate. | | **Data object** | `pricing_model_type: matrix_pricing` | ### System architecture In Zenskar, all pricing models are governed by a hierarchical relationship between entities: * **Contract:** The legal agreement between you and your customer. * **Phase:** A specific time-bound period (e.g., Q1, implementation phase) within that contract. * **Product:** The actual service or software module being sold. * **Pricing model:** The specific logic (matrix pricing) that defines how that product is billed. **Entity hierarchy:** ```mermaid theme={null} flowchart LR CONTRACT[Contract] ---|"has one or more"| PHASE[Phase] PHASE ---|"has one or more"| PRODUCT[Product] PRODUCT ---|"has exactly one active"| PRICINGMODEL[Pricing model] style PRICINGMODEL fill:#90ee90 ``` ### Price resolution flow This grid represents the abstract coordinate system used by the billing engine to resolve a rate: | Quantity (q) \| Attribute (attr) | j₁ | j₂ | j₃ | | -------------------------------- | --- | --- | --- | | **interval₁ (i₁)** | r₁₁ | r₁₂ | r₁₃ | | **interval₂ (i₂)** | r₂₁ | r₂₂ | r₂₃ | | **interval₃ (i₃)** | r₃₁ | r₃₂ | r₃₃ | The following flow describes how matrix pricing calculates the final price: 1. **Product library:** Defines the dimensions of the matrix (e.g., rows for volume, columns for region) and the rates (***r***) for every intersection. 2. **Contract:** Links the product to a customer and defines the data sources for both axes (***q*** and ***attr***). 3. **Data source:** Provides real-time values for both dimensions (e.g., a meter for quantity and a metadata tag for region). 4. **Billing engine:** Performs a coordinate lookup to find the specific rate ***rᵢⱼ*** and multiplies it by ***q*** to resolve the total price ***P***. ***