FAQ: Different pricing in year 1 vs year 2 for transactable SaaS offer

Microsoft

Q: Can a transactable SaaS offer have a different price in year 1 compared to year 2?  For example, in year one the price is $100 per user per month and year two the price is $50 per user per month.

 

A: Yes, multi-year offers can have different pricing each year.

1 Reply

I think additional clarification would be that sellers may set a different price for a 2-year term than they charge for a 1-year term for the same plan. However, the price would be fixed for the duration of the subscription if a 2-year or 3-year commitment is made.

 

Sellers can publish private offers for their Azure customers to provide a different price-points in year two when a 1-year subscription renews.

 

**Note the customer must accept the terms of the offer(s) prior to their subscription renewal date when the new price is desired to take effect. This is great for pre-negotiated renewals as well when you wish to maintain uninterrupted SaaS product service for your customer, but need them to agree to new terms & conditions or modify the overall pricing for the next subscription term. If no private offer is accepted, the subscription may either expire at end of term or auto-renew at the public price-point for that plan. Customers control whether their subscription auto-renews or not, but sellers have visibility to the status for each of their customers. See Private Offer FAQs for Publishers