#davidthorand
dry tiger
delicate steppe
Hi there, you can specify a application_fee_perecent https://stripe.com/docs/api/subscriptions/update#update_subscription-application_fee_percent when creating a subscription on the connected account.
cedar fable
First of all: Thank you for the fast reply! Appreciate 🙂
Just to get it right: So the idea is to create an "empty" subscription since we we can not know how much tickets a customer will sell, right? And then update that subscription on every ticket sale?
Also it says "Connect only". Will it work then? Since we are not using that
delicate steppe
I believe you need to use Connect, otherwise how do you plan to payout your customer after selling the tickets?
cedar fable
Ahhh I see. I messed up my explanation, my bad:
So our software does not let customers sell tickets. It handles the creation, distribution and validation of tickets. So the setup looks like this:
The customer (who uses Shopify) sells their tickets. When a ticket is sold, our software creates a ticket and sends that to the customer who just bought the ticket.
What we want to do with Stripe is charge our customer a fee based on the tickets they sold in that month
delicate steppe
OK. Thanks for the explanation. You can use usage-based pricing for you applicaiton (https://stripe.com/docs/products-prices/pricing-models#usage-based-pricing)
You can set the price as €0.01 for 1 unit (1 unit = €1. I'm not sure if this amount is allowed but you can try it out), and report the usage through API (https://stripe.com/docs/products-prices/pricing-models#reporting-usage), so that Stripe can create an invoice at the end of the month based on the reported usage.
cedar fable
But wouldn't the unit be off then? I mean if a ticket is sold for lets say €10 and we charge 1% of that we would have to report 100 units sold, right?
delicate steppe
I think you can just report 10 unit to charge €0.1 , if I understand your business model (e.g., 1%) correctly.
cedar fable
I have two concerns with that approach:
- The used units reported to our customers would not be right (it would be way higher than the actual ticket sold)
- It does not work anymore if the customer changes their tickets price (what happens regularly)
This is why it must be some sort of relative/percentage-based billing
delicate steppe
Your customer can't report the usage, only you merchant can use the API to report the usage.
cedar fable
Yeah, that's right. What I meant to say:
The approach you explained does not work if customer A sells their tickets for €10 each and customer B sells their tickets for €15 each. Further it does not work if customer C sells tickets for €10 and other tickets for €15 each.
delicate steppe
I don't understand why it doesn't work and I don't understand the examples.
cedar fable
Okay let's do another example here:
So one of our customers for instance sells 4 different ticket types for their next event:
- early bird single (€10)
- early bird group (€40)
- standard single (€12)
- standard group (€48)
How would it work then if we are charging 10% per ticket sold? In this specific example
I mean I understand your approach. But how would it look to new customers? It would say "1ct per unit" to them. Do you see the issue here?
delicate steppe
You just report (10 + 40 + 12 + 48=110) unit of usage, which would charge the customer €1.10. Is this amount correct to your business model?
cedar fable
€11 but yeah I get it. Still: Will that customer see 1100 units sold on their invoice? Because basically they only sold 4 tickets obviously
delicate steppe
Then it's 10%, not the 1% that you mentioned earlier.
cedar fable
Yeah, you're right. Sorry for that. Either way. The problem stays the same 😄
delicate steppe
https://stripe.com/docs/api/invoices/object#invoice_object-description you can put a description in the invoice to explain to the customers.
cedar fable
Alright, thank you 🙂