Percentage Based Pricing

Many SaaS, FinTech, and platform-based companies use usage-based or revenue-share pricing models (for example, 2.9% of card fees or 5% of monthly revenue). This feature lets you clearly communicate such pricing models on financial documents. You can now display a currency amount as a percentage on customer-facing essentials, such as Quotes and Invoices PDFs, to provide better clarity on your pricing offerings.

Eliminates Perceived Ambiguity: If customers see only a dollar amount for a percentage-based charge, it may seem unclear or misleading. By explicitly displaying the percentage, your business appears more transparent and trustworthy.

Prevents Disputes and Inquiries: Clearer invoices mean fewer clarifying questions from customers, reducing support overhead and enhancing the customer experience.

Let's consider an example: Company A has two elements in its pricing. One is the base fee, which is a flat fee rate, and the other is a metered percentage component, such as 2% of the total transactions completed.

To set up the above scenario in Chargebee, follow these steps:

1. Create a plan for the Base Fee pricing component and set its price.
2. Create a metered addon for the second component.
3. Select the checkbox Display prices as percentages under the Customer-Facing Info.
   
4. Click Set Percentage to set up the prices.
5. Select Per Unit as the Pricing model and enter the Percentage as 2%.
   
6. Click Create. You will see the Percentage and its relevant Price on the addon details page.
   

Impact on Quotes and Invoices

The currency amount will be used within Chargebee to perform computations. However, the invoice and quote PDF line item will showcase the percentage value. The following is an example of a detailed Quote PDF.

The following is an example of a detailed Invoice PDF.

Limitation

Although percentage pricing representation is not supported on Chargebee's hosted pages, the currency amount will continue to be displayed.