simeng | Stripe Developers | Page 1

tulip sundialBOT May 17, 2023, 2:21 AM

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pliant gale May 17, 2023, 2:21 AM

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👋 How can I help?

tepid citrus May 17, 2023, 2:23 AM

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Hi we are tring to integrate our SaaS product with Stripe using a subsciption base billing method.

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And we would like to define a pricing model with different tiers

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however the tier threshold is base on two factors MAU and average DAU

pliant gale May 17, 2023, 2:24 AM

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What are MAU and DAU?

tepid citrus May 17, 2023, 2:25 AM

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Monthly active users and Daily active users

pliant gale May 17, 2023, 2:25 AM

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Can you share an example of how you expect the pricing model to be like?

tepid citrus May 17, 2023, 2:26 AM

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sure. Give me a moment.

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Under the hood it is a Usage-based pricing model. The base unit will be MAU (monthly active users ). And there will be a unit price P. Without tiers, a foundamental monthly billing will be simply MAU * P.

However we would like to define different tiers with different unit prices basd on the usage frequency. The tier variable would be calculated based on average DAU divided by MAU. That may represent how frequently a end user use this product. The more often they use, the cheaper unit price would be.

So in a short words. Our request would be define a tier logic that is based on two dynamic factors, the standard usage unit (MAU). and another one average DAU

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Some example. Two differnt billing with same MAU 30.
A: MAU 30, average DAU: 1.
B: MAU 30 average DAU: 30

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A stands for there are different users visiting this product every day. Each user only be active for one day. B on the other hand, have 30 different users active daily.

pliant gale May 17, 2023, 2:37 AM

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You can use usage-based tier pricing: https://stripe.com/docs/products-prices/pricing-models#usage-based-pricing

How the usage is calculated and submitted will be done at your server, i.e. the average DAU divided by MAU toward the end of the cycle, and Stripe will calculate based the tiering provided

tepid citrus May 17, 2023, 2:40 AM

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I thought we have to precisely define a pricing model ahead, including the tier definitions, and all the final bill is calculated based on the usage unit we provided.

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At the stripe side

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pliant gale May 17, 2023, 2:42 AM

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Yes. From the example you shared, shouldn't you have precise pricing model of the DAU/MAU on different tiers?

tepid citrus May 17, 2023, 2:42 AM

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referencing this schema

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yes, but both DAU and MAU is a dynamic variable based on the usage right?

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The final price is still MAU * unit price

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but we need a way to provide the DAU/MAU on each billing cycle

pliant gale May 17, 2023, 2:44 AM

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Why can't you define the pricing model based on DAU divide by MAU since the usage records are based on DAU/MAU?

tepid citrus May 17, 2023, 2:45 AM

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DAU/MAU is gonna be a factor to be used to identify the unit price.

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The final bill would still based on the MAU usage

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MAU * unit price

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e.g. if DAU/MAU < 0.5 unit price is $2.

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DAU/MAU >= 0.5 unit price is $1

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the difference is MAU * $2 or MAU * $1

pliant gale May 17, 2023, 2:49 AM

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I see! Stripe tiering is based on the quantity/usage submitted. It can't be tiered by the factor (DAU/MAU)

tepid citrus May 17, 2023, 2:49 AM

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As I understand. unit_amount here will be the MAU which stands for the usage ammount.

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yes

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that is sth I would like to figure out

pliant gale May 17, 2023, 2:52 AM

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One way I can think of is to manage the factor tiering on your own. For example,

DAU/MAU < 0.5 is price_A
DAU/MAU >= 0.5 is price_B

When your system submits the usage records, check the price of the factor tier and then submit to the corresponding pricing tier

tepid citrus May 17, 2023, 2:54 AM

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hmm trying to absorb this. So a customer will sign with a subscription contract with a specifiic pruduct and a price model right?

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So we define multiple price under that product, or define multiple product.

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when our server submit the final usage, we calculate the tier and submit to differnt products?

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instead of using strips tiered pricing model. translate info different product based on the prcing tier?

pliant gale May 17, 2023, 2:57 AM

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So we define multiple price under that product, or define multiple product.
Multiple prices under the product

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when our server submit the final usage, we calculate the tier and submit to differnt products?
Submit to different prices that corresponds to the factor tier

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instead of using strips tiered pricing model. translate info different product based on the prcing tier?
One product can have multiple prices. You will translate the factor into different prices

tepid citrus May 17, 2023, 3:02 AM

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get it. I'll take a deep look at that direction thx. Just two more quick questions:

since the tier gonna be calculated at our side. Is there any rules stripe request us to follow or must present to the customers ahead of signing the subscriptions? I understand stripe trying to make the billing info as transparent as possible. With this approach the average DAU number going to be a black box for the stripe and customers.
Another thing come to my mind. Is it possible to apply discount automativelly based on the DAU/MAU we just mentioned? Would that be another approach

pliant gale May 17, 2023, 3:08 AM

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We recommend to show the pricing details in your website or in the subscription details shown to customer as clear as possible to avoid any dispute/chargeback in the future.

Alternatively, you can add all the tier prices to the subscription. Since they are usage-based billing, customer will only be charged on the price that the usage records submitted. However, customer will see all your self-defined pricing tiers with this approach.

Stripe doesn't support automatic discount. Your system can add discount to the invoice when the invoice is still in draft status

tepid citrus May 17, 2023, 3:12 AM

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I see. good to known. Thx for the assist. Appreciate it.

#simeng