Configure Matrix Pricing for Usage-Based Charges

Contents

• Overview
• How Matrix Pricing Works
• Prerequisites
• Configure Matrix Pricing on a Tiered Usage-Based Charge
• Use Case Example
• Limitations
• FAQs

Overview

Matrix pricing lets you vary the price of a usage-based charge based on up to two customer or usage attributes. For example, you can use different prices based on customer and event type, or region and feature tier, without creating a separate plan for each combination.

This article explains how matrix pricing works and how to configure it for a usage-based charge.

How Matrix Pricing Works

Matrix pricing adds up to two dimensions to a usage-based charge. A dimension is an attribute, such as Customer ID or Event Type, that determines which pricing row applies to a usage event. 

You can build dimensions from fields on these objects:

• Events
• Customers
• Products
• Subscriptions
• Subscription Charges
• Quotes
• Quote Charges
• Orders
• Order Lines

Each combination of dimension values creates a row in the pricing matrix. You can define a different price for each row.

Every matrix includes a Default row. If a usage event does not match any configured dimension values, Ordway applies the pricing from the Default row.

Matrix Pricing is supported for Usage Based charges with the following pricing models:

• Per Unit
• Volume
• Tiered

Matrix Pricing is not supported for One Time or Recurring charges.

Prerequisites

Before you configure matrix pricing:

• Event-based rating and Matrix Pricing must be enabled. Contact Ordway Support team to enable this feature.
• The charge must be a Usage Based charge.
• The pricing model must be Per Unit, Volume, or Tiered.
• No specific plan or product is required.
• To configure matrix pricing on a charge, you need standard Plans/Subscriptions edit access.

Configure Matrix Pricing on a Tiered Usage-Based Charge

Step 1: Create or edit the charge 

1. Create or edit a Usage Based charge. 
2. In Billing Information, select Usage Based as the Charge Type. 
   
3. Select Per Unit, Volume, or Tiered as the Pricing Model. 
4. Enable Price Matrix toggle. The Pricing Matrix tab becomes available after you enable Price Matrix. 
   

Step 2: Open the Pricing Matrix tab 

5. Select the Pricing Matrix tab. 
   
6. Select one of the following options:
   • Use Existing Price Matrix — use a reusable price matrix that is already configured.
   • Create New Price Matrix — create a new price matrix for the charge.

Step 3: Create a new price matrix 

If you select Create New Price Matrix: 

7. Enter a name in Price Matrix Name.
   
8. Select + Add Dimension.
9. In Field/Dimension, select the object and field that you want to use as the dimension.
   
10. For example:
    • Customers → Customer ID
11. Enter a value for the selected dimension.
    
12. Select Add Value to add the value to the matrix.

Step 4: Add a second dimension 

13. If you need to price based on another attribute, select + Add Dimension.
    
14. Select the object and field for the second dimension.
15. Add the applicable values.

Step 5: Configure pricing

16. Configure the pricing for each applicable matrix row.
17. For Volume or Tiered pricing, configure the applicable From and To ranges and enter the price.
18. For Volume or Tiered pricing, select the applicable Type:

• Per Unit
• Flat Fee

19. Configure the Default row.
    • The Default row provides the pricing that Ordway applies when a usage event doesn't match a configured dimension value.

Step 6: Save the matrix

20. Review the configured dimensions, values, and pricing.
21. Select Save.

Result

When Ordway rates usage, it evaluates the configured dimension values and applies the pricing from the matching matrix row.

If a usage event doesn't match a configured row, Ordway applies the pricing from the Default row.

Notes

• A matrix supports up to two dimensions. 
• For Tiered pricing, tier ranges are shared across the matrix rows. The price for each tier can vary by row. 
• For Volume and Tiered matrix rows, the pricing type can be Per Unit or Flat Fee, as supported. 

Use Case Example

you sell an API service. You charge based on how many API calls are made, but the price depends on which customer is using the service.

You have two customers:

• Acme Corp
• Beta Inc

You want different prices for each customer. 

• Without Matrix Pricing, you might need separate charges/plans for different pricing combinations.
• With Matrix Pricing, you can define the pricing in one matrix.

Example 1: One dimension — Customer

Suppose your Usage Based charge is: API Calls

You choose:

Dimension 1 → Customers → Customer ID

Then add values:

• Acme Corp
• Beta Inc

Your matrix could look conceptually like this:

Now, Acme Corp uses 200 units.

Ordway looks at:

It finds the applicable Acme Corp pricing row/tier and uses that pricing.

If: Beta Inc uses 200 units, Ordway uses the Beta Inc pricing instead.

That's the basic idea of Matrix Pricing: The same Usage Based charge can have different pricing based on a dimension value.

Example 2: Two dimensions

This is where Matrix Pricing becomes more powerful.

Suppose you're charging for API usage, and the price depends on:

1. Customer
2. Event Type

You configure:

• Dimension 1 → Customer ID
• Dimension 2 → Event Type

For example:

Now Ordway can determine the applicable price based on both attributes.

For example:

Ordway finds:

Acme Corp + Data Export → $0.20

That's why the feature is called a matrix. You're creating pricing based on combinations of dimension values.

Notes

• A matrix supports up to two dimensions. 
• For Tiered pricing, tier ranges are shared across the matrix rows. The price for each tier can vary by row. 
• For Volume and Tiered matrix rows, the pricing type can be Per Unit or Flat Fee, as supported. 

Limitations

• Matrix pricing supports a maximum of two dimensions.
• Matrix pricing is supported only for Usage Based charges.
• Matrix pricing does not support One Time or Recurring charges.
• Dimension values must be a finite, defined set.

Confirm whether Volume pricing is currently available with matrix pricing for usage-based charges

Confirm whether matrix pricing is available for One Time or Recurring charges yet, or whether it remains limited to Usage Based charges only.

FAQs