FAQ: Multiyear contract with increasing pricing

Q: I have a SaaS solution which has the following requirements for its pricing:

• 3-year contracts, with prices for the 3 years previously agreed upon 
• The prices agreed upon are different every year (e.g. year 1 100$, year 2 120$, year 3 150$)
• No metered billing
• I want to work with private offers
• Ideally, offers renews automatically every year for 3 years, and the price agreed upon at the beginning is set for the year.

Would I need to create 1-year private offers and upgrade them every year? 

 

A: You will need 3 private offers, one for each year where you specify the prices for the year.

Each private offers has the appropriate StartDate - EndDate to cover the 1 year period it represents (year1, 2, or 3)

 

All 3 private offers are sent to the customer at the beginning of the term, all 3 are accepted.

Customer then makes one subscription with auto-renewal on so that the offer gets charged and processed every year at the price of the private offer that is in effect at the time of renewal