geordi-tiered-prorations

[faint lark]

Hey! Can you elaborate on the image attached?

Have you tested this out? Is the behaviour different to what you were expecting?

[torpid flame]

Yeah so the image is: license quantity, discount (as a percentage), total amount, issue with discount

When you move from licenses where the discount jumps to 10% the total amount is less than the previous amount, we are wanting to clarify how that is handled

Hasn't been tested as such as we are mid-migration (company: Mentimeter) and facing these questions.

[faint lark]

Got it! Let me test this quickly as I'm not super familiar with proration behaviour for tiered pricing. To confirm you're checking price switching for upgrading to an amount which is cheaper (because of discounts)

Also, how are you managing those discounts? Modelled in the Stripe Price objects?

[torpid flame]

exactly

[torpid flame]

Okay great, thank you

[torpid flame]

sorry, yes - when you hit a tier where the discount means the total amount is cheaper than the current total amount (between 24-25 in the image above)

[faint lark]

Just to confirm, you're using volume and not graduated pricing? https://stripe.com/docs/billing/subscriptions/tiers#volume

This mimics your setup right?

[torpid flame]

Sorry will get back to you in a second 🙂 was in a meeting with Stripe! haha

[torpid flame]

Yes volume pricing currenty 🙂

[torpid flame]

Not quite - the per unit price gradually decrease based on the tier. The 'Bad Discount' field shows when the total amount at a higher tier costs less than the license quantity beforehand

So the 10% that kicks in at 25-50 licenses is cheaper than 23/24 licenses - if a user were to go through that - would the negative amount be credited (and perhaps refundable given they cancel their subscription autorenewal)

Does that make sense? I can try explain in a clearer way if not

[frail breach]

Hello, apologies for the delay here. The customer will indeed get the credit/discount here.

One moment for my test example...

[torpid flame]

No problem at all! Thanks

[frail breach]

Test volume tiers:

And this is the proration of going from qty 1 to 2

Do you have questions of how you can react when this happens?

Is this the intended pricing experience for going between the tiers?

[torpid flame]

Thanks for this - so am I correct in saying that the 'credit' gets shifted onto the next invoice if the total amount at the higher tier is cheaper than the current tier?

[frail breach]

Correct

[torpid flame]

And if a customer cancels their renewal during the period after upgrade, but before the next invoice - what happens to that credit?

in my above attached pics, if a customer upgraded from 23 licenses to 25 - the next tier would kick in - and the customer would be credited on their next invoice as I understand it - but if they were to cancel straight after the upgrade, the next invoice is invalid but they had a credit

Hope it's clear, please let me know if not

[frail breach]

I understand your scenario. Reproducing and will get back to you...

[torpid flame]

Thank you!

[frail breach]

The credit will not automatically go to the customer's balance though you do have the option to refund their payment. You can separately credit them if you want https://stripe.com/docs/billing/customer/balance

[torpid flame]

Okay thanks - what do you mean by 'separately credit' in this scenario?

[frail breach]

You can modify their balance and add to it if you feel it is appropriate. https://stripe.com/docs/billing/customer/balance#modifying