> ## 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. # Percent pricing ## Concepts **Percent pricing** is a model where your revenue is tied directly to the value you help your customers generate. It is the standard for commissions, royalties, and value-added surcharges. ### The logic of dimensions Percent pricing is a **1-Dimensional** model. It depends on a single factor: the **base value (*q*)** flowing through the contract. Think of this as **brokerage.** In this model, Zenskar acts as your broker, calculating a professional "cut" of every transaction. Like a broker’s commission, the fee has no independent height; its scale is physically locked to the size of the deal. If the transaction value doubles, your brokerage fee doubles in perfect lockstep. ### Case 1: Metered (usage-based percentage) In a metered scenario, the **Base Value ()** is dynamic. Zenskar monitors a stream of data (a "Meter") and calculates the fee based on the actual activity recorded during the billing cycle. * **Scenario:** A **5% Management Fee** calculated on the total dollar value of logs ingested. * **The base (q):** A billable metric that sums the total cost of storage consumed. * **The calculation:** If the meter reports \$1,500 in storage consumed, Zenskar takes its 5% cut. | Base source (metered) | Base Value (*q*) | Percent Rate (*r*) | Final Bill (*P*) | | ----------------------- | ---------------- | ------------------ | ---------------- | | **Total Storage Value** | \$1,500.00 | 5% | **\$75.00** | ### Case 2: Non-metered (fixed-value percentage) In a non-metered scenario, the **base value (q)** is static. This is used when the percentage applies to a predefined amount that does not change based on usage, such as a one-time setup fee or a fixed monthly allowance. * **Scenario:** A **10% Onboarding Surcharge** applied to a fixed implementation cost. * **The base (q):** A fixed quantity defined directly in the product or contract (e.g., \$5,000). * **The calculation:** Zenskar applies the percentage to the static value regardless of monthly consumption. | Base source (Static) | Base value (*q*) | Percent rate (*r*) | Final bill (*P*) | | -------------------- | ---------------- | ------------------ | ---------------- | | **Fixed Setup Cost** | \$5,000.00 | 10% | **\$500.00** | *** ## Get started ### Create a percent-based product 1. **Navigate to the Library:** Go to **Contracts** > **Products**. 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 Percent Pricing Model:** In the Pricing Model dropdown, select **Percent Pricing**. 5. **Set the Percentage Rate ():** Enter the numerical percentage (for example, 5 for 5%). 6. **Review and Save:** Complete the remaining required fields, click **Confirm**, then click **Done** on the Price Details page to finalize the setup. ## How-to: Add percent pricing 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 percent pricing 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 percent pricing product 5. Click **ADD PRODUCT**. You will be redirected to the Summary page. Click **Publish**. *** ## Reference ### Technical specifications | Attribute | Specification | | ---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | | **Dimensionality** | **1-dimensional (univariate)** | | **Math formula** | ***P = (r × q)* / 100** | | **Logic type** | **Proportional function**: The cost is a direct fraction of the underlying base value or quantity. | | **Boundary behavior** | **N/A**: The percentage rate is applied uniformly to the entire base value. | | **Calculation engine** | **Value-based scaling**: The engine retrieves the base value () from either a dynamic meter or a static product definition and applies the rate (). | | **Data object** | `pricing_model_type: percent_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 (percent 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 The following flow describes how percent pricing calculates the final price: 1. **Product library:** Defines the global percentage rate (***r***) and whether the source is metered or non-metered. 2. **Contract:** Links the percent product to a customer and maps it to the appropriate data source. 3. **Data source (*q*):** * **Metered:** The value is pulled dynamically from a billable metric (e.g., total GMV). * **Non-metered:** The value is pulled from a fixed quantity field (e.g., a one-time setup fee). 4. **Billing engine:** Processes the base value, applies the percentage, and resolves the total price ***P*** for the invoice line item. ***