Addons are an effective way of selling additional products/services to your customers and boost your sales revenue.
For example, if you are selling a software tool for businesses in three different plans - Enterprise, Professional, and Basic. In addition to the set of features that come with each plan, you might have a reporting module that you'd like to offer to users at an additional cost. You can create an addon for the Reports module in your Chargebee site and there are two options:
Addons can be included in a subscription while
Before you start creating addons in your Chargebee site, ensure that you have added all the necessary billing frequencies under Essential Settings.
To create a new addon in your Chargebee site, follow these steps:
After creating addons, you can start adding multiple price points for each addon.
Using price points you can:
To define a price point for an addon, follow these steps:
Click Product Catalog > Addons. Select the addon for which you are creating price points.
In the details page, the Pricing section displays all the billing frequencies that you have added for your site for every currency configured.
Go to the billing frequency for the currency that you want to add for this addon, and click Set Price.
In the Create a Price Point page, you can modify the basic attributes of the addon's price point such as:
In the Pricing section, you can configure the pricing attributes of the addon's price point such as:
Under Customer facing info, do the following:
Taxes: If Taxes have been configured, you can choose to exempt an addon price point from taxes by unchecking This addon price point is subject to taxes. If you are choosing to keep the addon taxable, choose a tax profile for it. This would determine — during invoicing — what taxes are applied to the price of the addon.
Accounting Information: The Accounting Information section helps Chargebee sync up with any accounting applications that you integrate with, like Xero and QuickBooks. Each of the accounting fields captures information that helps track product-specific sales and revenue from an accounting perspective.
You can define multiple price points for each addon, for all the currencies and billing frequencies in which you want to offer your addons.
The price of the addon is set according to the pricing model chosen for the addon. The pricing model can be one of the following:
Flat fee: This is for addons that have a fixed recurring charge. There is no quantity associated with such addons.
Per Unit: You may choose to sell services that are billed based on quantity signed-up for. For instance, you may be offering a support service for $15 per user per month. The quantity here would be the number of users. The customer can specify the addon quantity during sign-up through the hosted pages or – if you are using API – then you may use the Create Subscription API call .
Tiered: In tiered pricing also, the per unit prices are assigned to quantity-based ranges (tiers). When calculating the total price, quantities are purchased from successive tiers, starting from the lowest.
Volume: Here too, the price is quantity-based. However, the per unit price is dependent on the range within which the total quantity falls. So under this model, you would define the quantity ranges and the per unit price for each.
Stairstep: Stairstep pricing also defines quantity tiers against which prices are defined, but for each tier, a flat price is assigned instead of a per unit price.
This action allows you to change the addon configuration. The Addon ID for an addon cannot be changed once the addon has been created.
This action allows you to change the price point configuration. The Addon Price Point Id and the Pricing Model for a price point cannot be changed once the price point has been defined.
Editing a price point differs based on whether subscriptions are created for the price point or not.
When a price point has subscriptions attached to it, the price can be changed (though only when the pricing model is flat or per unit).
To change the price of a price point, follow these steps:
The new price is applied to all new subscriptions to the addon. Existing subscriptions are not affected and continue to be renewed at the old price.
Can recurring addons be added to a subscription in the middle of its term?
Yes, this can be done by choosing Change Subscription under the list of actions available on the subscription details page. If proration is enabled, the charge for the addon is prorated for the remaining term of the subscription. If disabled, then the addon is charged for from the next renewal.
Can I control how many times an addon renews with the subscription?
Yes, for this, enable billing cycle for addons.
If you do have a usage-based or metered billing subscription model, then you can create non recurring quantity based addons to apply metered charges as addons. Learn more about metered billing.
Yes, enable addon trials for this.
How is a one-time charge different from a non-recurring addon?
A non-recurring addon is a product or service that has been modeled into Chargebee that does not renew with the subscription though it is linked to it. A one-time charge is an ad-hoc charge against a customer and is not linked to any particular subscription. More information about these two ways of charging is presented here.
I have a usage-based subscription model, how do I handle that in Chargebee?
Use Chargebee's metered billing feature to use non-recurring addons to apply usage charges.