> ## 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. # Step pricing ## Concepts **Step pricing** is a model where the cost remains constant across specific usage ranges and then "jumps" to a higher flat fee once a threshold is crossed. Unlike per-unit or tiered models where every additional unit adds to the cost, step pricing treats usage as a series of flat-fee plateaus. ### The logic of dimensions Step pricing is a **1-dimensional** model. It depends on one factor: **quantity ()**. Think of this as **"The plateau."** Imagine you are renting a moving truck. Whether you drive 1 mile or 50 miles, the price is exactly $40. As soon as you hit 51 miles, the price jumps to $80 and stays there until you hit the next limit. Your cost doesn't climb a slope; it rests on a flat plateau until you are forced to step up to the next level. ### SaaS example: Cloud log storage A monitoring platform offers storage in fixed "service tiers." Each tier provides a wide capacity range for a single fixed price. | Storage range (*q*) | Flat fee (*c*) | | ------------------- | -------------- | | **0 – 500 gb** | \$100.00 | | **501 – 2,000 gb** | \$300.00 | | **2,001+ gb** | \$600.00 | **The "Plateau" calculation:** Zenskar identifies which range the total quantity falls into and applies the corresponding flat fee. The individual units within that range do not have a per-unit cost. | Input metric (*q*) | Pricing logic | Final bill (*P*) | | ------------------ | -------------------------------- | ---------------- | | **1,500 gb** | Falls into tier 2 (501–2,000 gb) | **\$300.00** | *** ## Get Started ### Create a step-priced 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 Step Pricing Model:** In the Pricing Model dropdown, select **Step Pricing**. 5. **Configure Tiers and Save:** Click **+ Add Tier** to create pricing brackets. Define the **from** and **to** ranges and enter the **price** for each tier. Continue adding tiers as needed. Once complete, click **Confirm**, then click **Done** on the Price Details page to finalize the setup. ## How-to: Add step 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 step pricing product. 4. Click **ADD PRODUCT**. You will be redirected to the Summary page. Click **Publish**. ### 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 step 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 = cᵢ** | | **Logic type** | **Step function**: The output value is constant within intervals and changes only at discrete thresholds. | | **Boundary behavior** | **Lower-inclusive**: A value exactly at a threshold belongs to the plateau starting at that value. | | **Calculation engine** | **Range mapping**: The engine resolves the total , identifies the corresponding range , and returns the fixed constant . | | **Data object** | `pricing_model_type: step_pricing` | ### Comparison of bracket-based models | Feature | Step pricing | Tiered with flat fee | Volume with flat fee | | ----------------- | --------------------------------------------------- | ----------------------------------------------------------------- | ------------------------------------------------------------------ | | **The metaphor** | **The plateau** | **The toll road** | **The membership club** | | **Billing logic** | You pay the flat fee of the **current** range only. | You pay the **cumulative sum** of flat fees for all tiers passed. | You "level up" the **entire volume** to a single new fee and rate. | | **Math formula** | ***P = cᵢ*** | ***P = Σ (cᵢ + (rᵢ × qᵢ))*** | ***P = cᵢ + (rᵢ × q)*** | | **Marginal cost** | **\$0** (until you hit the next threshold). | **\$0 + unit rate** (depends on the tier's ). | **Unit rate** (applies to all units from 1 to ). | ### 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 (step 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 step pricing calculates the final price: 1. **Product library:** Defines the various usage ranges and their respective flat fees (***cᵢ***). 2. **Contract:** Links the product to a customer and defines the quantity source (***q***). 3. **Data source:** Provides the value of from a meter or product field. 4. **Billing engine:** Locates the single plateau (***i***) where ***q*** resides and injects the constant fee ***cᵢ*** into the invoice. ***