Tiered Pricing - Units & Quantity

Revenue Hub Commerce Tools
1

For the tiered pricing with the Commerce Hub (we have enterprise), we are running into an issue for how HubSpot is defining Units vs Quantity within the line items.

For example, we have our pricing model built on hospital revenue. They fall within different tiers based on the revenue amount. So, I built the tiers using the revenue as “Units”

Tier 1.png

. However - it doesn’t work when we have multi-hospital deals because Quantity gets replaced with Units in the line items.

Meaning, if we have a deal with 8 hospitals and all 8 hospitals fall within the same tier, we need to add 8 different line items (one for each facility) because we are unable to use Quantity at that point.

Am I doing something wrong? Is this a limitation with tiered pricing? Is there no way to separate out the quantity from this?

2

Hi @LNitti,

Thanks for bringing this to the Community!

Based on the context you’ve provided and what I’ve found in out documentation on the matter, it appears you’re using this correctly. However, I’d like to tag in some of our Top Contributors to see if they have any experience with this!

@karstenkoehler, @Anton, @Josh -- Do you have any suggestions for @LNitti on making this process more efficient?

Thanks!

Sam, Community Manager

3

Hi @LNitti,

If I’m understanding you correctly, you’re basing the tiers on hospital revenue, but the revenue for the hospital doesn’t necessarily align with the total number of units.
For example:
Hospital A: $20M in annual revenue falls in a tier where each unit is $3
Hospital B: $100M in annual revenue falls in a tier where each unit is $7

Hospital A actually needs 10 units which equals $30 and Hospital A also needs 10 units, but their price is actually $70.

I think you’d need to think about this slightly differently if that’s the case. You might need multiple line items Tier 1 Hospitals, Tier 2 Hospitals, Tier 3 Hospitals, etc.

If I am misunderstanding, let me know and I’ll continue to help you troubleshoot!

4

Hi Josh,

I guess my question is, why does the “units” in Tiers replace quantity on the line item and is there any way around this?

Example:

Hospital A makes $200m NPR

- Using the stair step tier, that NPR would fall in Tier 1

- Rep puts in the NPR$ in the units to get the price

- The NPR$ that was put into units to get the tiered price is put into Quantity on the line item

- It looks like they are purchasing 100 units, but that is just the NPR for the tier.

So for our bigger deals with multiple hospitals, it’s priced per facility. So if we have 10 facilities (say they all fall within the same tier of tier 1), the rep has to add the line item 10 times rather than being able to put 10 in the quantity, because the quantity is already filled in from the units.

5

Hi @LNitti,

I think what I’d do in this scenario is not use tiered pricing as you are. I would:

  • Create products in HubSpot per tier with the appropriate per-unit pricing
  • Rep enters revenue on the deal as a custom property (you’ll need to create the custom property)
  • You could also have a custom property for the number of facilities
  • Create a workflow that enrolls when both of those values are known (or whatever other criteria you prefer)
  • Have a branch for each revenue threshold that aligns with your products
    • Revenue is between $0-$10M, $10,000,001-$50,000,000M, and so on
  • Use an action to add line items to the deal based on the branch they fall within
    • If you also use facility count, you could add the number of units as well using a workflow

If you need help getting this setup, I’d be happy to do so. Feel free to book a meeting.

Josh