#hargharwala-subscription-setupfee

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full needleBOT
candid sun
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Hello ๐Ÿ‘‹
With usage based subscriptions, the invoices are generated at the end of the billing cycle (weekly, monthly, yearly etc)
There's no way to issue an invoice daily on a monthly subscription

short agate
short agate
candid sun
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Do you have an example in mind? It would help to be on the same page

short agate
#

sure! let me give an example,

I have vendors and customers to my app, vendors sells milk and newspapers daily, where my users take subscriptions on products they sell for particular duration of time, as my pricing model is usage_based daily the vendor updates usage, but when users select products which is of daily recuring price model and create subscription, I want to assume usage as 1 usage per day for 1 month period of time and bill it on the starting day of subscription and start the subscription, if the usage is exceed or left over that should be added to next subscription

candid sun
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Gotcha. Thinking..

round mantle
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Hello, just making sure I understand this: if usage is $1 a day, you would want to charge them $30 upfront for the month of June?

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And then if the user didn't use your service for 5 days in June, you would credit them $5 for July and only charge $31-$5=$26 dollars upfront for the month of July?

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If not, can you give an example with prices to give me a clearer picture of your goal?

short agate
# round mantle Hello, just making sure I understand this: if usage is $1 a day, you would want ...

sure! let say a product cost $1 a day and I have charged upfront of 30$.

case 1:
if user have used only $5 on this month, I want to charge 30$ - 25$ = 5$ as an upfront for next subscription.

case 2:
if user have used more than 30$, let say 35$, then I want to charge 30$ + 5$ = 35$ as upfront for next subscription.

case 3:
if user have used only $5 and want to end subscription, I want to refund the remaining amount.

case 4:
if user have used 35$ and want to end subscription, the user need to pay remaining amount to subscription.

round mantle
#

Thank you for the examples. I am trying to think of how you can implement this with Stripe. I think our usage-based billing offerings are intended for very different pricing models but you should be able to do this with our standard subscriptions. I am looking in to specifics of what you might way to do here and will get back to you

round mantle
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It is difficult to say what the best way of implementing this pricing model is on Stripe. Our usage-based model is decently different from what you are talking about so it may be easier to just do this via our standard subscription model where you could add credit notes and invoice items to change the price as appropriate.
Also, we don't have a pre-built way to charge different amounts based on the number of days in a month so we will likely need a workaround there as well but let's talk about the basic pricing/subscription structure first.

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Actually now that I think of it, you may be able to do this with usage-based pricing. For clarity it may be best to have one price to pre-bill for the next month and one price to charge for extra usage from the previous month.

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But basically, I think you can create a subscription with just a usage-based price and a one time invoice item to charge for the first month's usage upfront.

short agate
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can you explain me with an example where I can charge for upfront for 1st month and I need to update usage and bill accordingly for next month and the upfront for this month as well

round mantle
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Yep, looking for docs on that. Will send a link when I find one

full needleBOT
round mantle
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So basically you would define an item that charges for the whole next month:

    {price_data: {
        product: 'prod_1234',
        unit_amount: 3100,
        currency: 'usd'
    }}
  ]```
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Then for over-usage report usage on the subscription as normal

uncut needle
#

hargharwala-subscription-setupfee

short agate
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but my products is of per day per unit pricing model

round mantle
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Right, so you would customize the upfront amount to match the amount of days in the next month

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Then my idea was to have a usage based price on the subscription with a name like "pre-bill for the next month" and then at the end of each month you add 1 usage per day to that price

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And for the over-use you have a similar price and just add to that for any usage over the 1 use per day that you have already charged for

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The other, potentially simpler solution would to just have a subscription with a flat rate price and to just add extra invoice items or make credit notes to adjust the price of the next month as appropriate.

short agate
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can you please explain this with use case of my product below

Product 1 - 20$ per day per unit

so I want to cost upfront as 600$

round mantle
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Sure, so you would create a subscription with:

  {
    price: 'price_123' // Some usage-based price
  }
],
add_invoice_items: [
  {
    price_data: {
       product: 'prod_456',
      unit_amount: 60000,
      currency: 'usd'
  }}
]
uncut needle
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@round mantle leaving this thread to you for now and delurking from the thread

short agate
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i want to use that upfront for the usage how can it be possible

uncut needle
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I'm sorry, I don't know what that sentence could mean

short agate
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How this upfront amount is used as usage amount at the end of the month

uncut needle
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I'm sorry, still have no idea what this means unfortunately ๐Ÿ˜ฆ

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Can you try and give a concrete example of what is being paid at which point?

short agate
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Let say i have product 1$ a day per unit and i have charged 30$ as upfront and at the end of the month let say the usage is 25$, now at the end of the month how much amount does the invoice is generated?

uncut needle
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sorry totally missed you reply amongst all the other threads my bad

short agate
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No problem!

uncut needle
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The upfront charge of $30 is totally unrelated to what happened at the end of the month. So in your example you charge $30 today and in a month you'd charge $25 I assume

short agate
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usage is 25$ but i should not charge again 25$ the 30$ upfront should be considered at the end of the month

uncut needle
short agate
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Then it is better i use standard pricing model

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I am bit confusing as Iam new to this can you please suggest me what pricing model and workflow best suits to my use case

uncut needle
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Unfortunately, I really don't understand what you are trying to do so I can't really suggest anything ๐Ÿ˜ฆ

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You said usage based, then you said you wanted an extra fee upfront, now it seems you want a base fee with some extra usage based, but it's all quite unclear

short agate
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let me explain my complete use case

uncut needle
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they would be better equipped to help guide you based on your overall business model as this isn't really about code

full needleBOT
short agate
#

I have vendors who sell their products daily and customers take subscriptions to them for a particular duration, say one month.

let's assume that a customer has taken a subscription for a product of 1$ so I want to bill him 30$ at the start of the subscription. So now users get their product daily, but for some reason, customers don't want some days, let's say 5 days.

Now if the customer has taken another one-month subscription the remaining 5$ should be subtracted from the 30$.

What product pricing model is suitable and what subscription model is used?

dawn crag
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๐Ÿ‘‹ hopping in here - give me a minute to catch up

short agate
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sure!