Hi community,
I am in a situation where our team gives trial subscriptions for certain months or discount % for a few months and then applies full value for the remaining months.
However, when I generated the quote, the deal amount was the total sum of the two product values which is incorrect.
As shown below, for first 3 months there is a 25% discount and then from next year there will be full price. But the total MRR appears to be £70 which is not right. What do you propose the best way to show a proper MRR and ARR?
-Should we create multiple quotes in a single deal?
-Or should we create single quote and refer it in all the deals?
or should we create one quote per deal and send it for signing?
Please advise
Hi, @HGupta9 ,
May I please confirm if the trial is for the first 3 months and then afterwards the price goes back to normal? Also, what would you expect as the MRR? For is to vary for the first 3 months and then to adjust as per the normal price, or to be an average of what it would be for the 3 months + the 12 months of the actual price?
From my point of view, for a proper calculation of MRR and ARR, you might need to have not 2 quotes for the same deal, but 2 deals for the same thing. I have a few customers that have a similar setup. The primary reason for them why they keep both as separate deals is to see how many people continue after the trial anyway, as not everyone continues.
For your business, are people obliged to proceed with the annual contract after the trial? Is that why you’re sending it as a single quote, so in a way, they commit to the full period regardless?
Having separate deals will make the MRR and ARR calculation a lot easier, as well. Once you can answer the questions, I can look into this with more context. 
Does this help?
Eli
PS: I just realised that if you wanted to update your quote template, that can reflect the trial price and the total price, too (so the client still sees what they need to in the same document), whilst you still have 2 deals for the same thing to help you internally for reporting purposes.
Hi @elizheleva
Thanks for your response
Here are the answers to your query:
- → Yes, we generally give discounted rates for the first few months to clients and then start charging the full price for the rest of year until the renewal happens.
- I believe MRR should reflect the true picture. Else we will never get to know how much the client is intend to pay this month.
- We tend to do yearly contracts with the client.
Hi, @HGupta9 ,
Thank you for your prompt response!
Oh, there’s another thing to clarify, it seems. You just mentioned “Yes, we generally give discounted rates for the first few months to clients and then start charging the full price for the rest of year”. If I’m understanding correctly, that means that the full price is paid for 9 months only, given that you have the first 3 discounted. If that’s the case, that will already change the MRR, as it will be (3*2*20 - 25%) and then (9*2*20). That will certainly give us different numbers.
I would agree that the MRR reflecting the true price is definitely the right approach.
Thanks,
Eli
