Adjust Prices
Price Adjustment is a type of change that allows you to modify the price of a subscription in the middle of a subscription term or upon renewal. Price adjustments can be applied to a subscription at any point during the subscription term, and can be based on a percentage increase or decrease, or a fixed dollar amount.
Price adjustments can be made for various reasons, such as changes in pricing due to changes in market conditions, inflation, or changes in service offerings. Price adjustments can be applied to all subscription types including usage-based subscriptions, recurring subscriptions, and hybrid subscriptions.
When a price adjustment is applied, it generates a new subscription version with the updated price, which is then automatically reflected in the customer's account. The price adjustment is also recorded in the subscription's history for reference and audit purposes.
So as part of this feature, we introduced a new Change Type: Adjust Price.
Please be aware that the product names and pricing examples used in this article are purely fictional and do not represent the actual products and pricing offered by Nue.
Setting It Up
Adjust Price as a change type is not enabled by default. Please follow the steps below to enable this change type:
- Login to Nue App
- Click on Settings → In the Settings Search Box, search for 'Change Types'
- In the Change Types setting, enable "Adjust Price'
After Adjust Price change type is enabled, you may also want to refresh your browser to see this new change type.
- Login to Nue on Salesforce
- Select any account with active subscriptions
- Click 'Manager Customer Lifecycle' button
- Navigate to 'Subscriptions' tab
- You should be able to see a new action button 'Adjust Price' available in the Subscription card.
Scenarios
In the Lifecycle Manager, you can make the following types of price adjustments to an existing active subscription:
- Set the Net Sales Price to a specific, absolute price
- Give a certain percentage of price increase, or discount, which can be optionally applied to all add-ons if the subscription is a bundle product that has children add-on subscriptions
You may also specify the starting date, and the duration of the price adjustment.
You can following the steps below to adjust prices to an existing active subscription in the middle of the subscription term:
- Login to Nue on Salesforce
- Select any account with active subscriptions
- Click 'Manager Customer Lifecycle' button
- Navigate to 'Subscriptions' tab, and click 'Adjust Price'.
Now, we will illustrate these various options using a few examples.
Use Case #1: Set the price to a certain amount till the end of the subscription term
Sometimes, during the middle of a subscription term, a customer may request a price adjustment due to changing circumstances or budget constraints. Offering a fixed rate for the remainder of the term can be a way to accommodate such requests and maintain a positive customer relationship.
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SCENARIO
Sharp Revenue, our customer, currently has a 12-month subscription for 100 user licenses of the Nue Platform. This subscription started on September 1, 2023, with a Net Sales Price set at $9.90 per user per month.
Now, Sharp Revenue wishes to expand their subscription by adding an additional 50 user licenses, effective from January 1, 2024. However, they want to renegotiate the pricing for the entire user base, both the original 100 licenses and the newly added 50 licenses, to be set at $9.00 per user per month starting from January 1, 2024. |
You can follow the steps below to implement this scenario:
- Click on the account ("Sharp Revenue") and click 'Manage Customer Lifecycle" to navigate to the lifecycle manager
- Click 'Update Quantity" to add 50 user licenses starting 01/01/2024. Click 'Confirm' to add the change request to the change cart.
- Click "Adjust Price" to set the price to USD $9 User/Month, starting 01/01/2024, till the end of the subscription term. Click 'Confirm' to add the change request to the change set.
- Now click on 'Change Cart'. There are 2 changes for the customer:
- Click 'Checkout' button to check out the change into a quote or an order
- In the newly created chnage quote or order, you can clearly see 1 Summary Line and 2 Change Lines created for the price adjustments:
- A Change Line that reduces $0.90 for the existing 100 user licenses, starting 01/01/2024, ending 08/31/2024, which is the end of the current subscription term;
- A Change Line that reduces $0.90 for the newly added 50 user licenses, starting 01/01/2024, ending 08/31/2024, which is the end of the current subscription term;
- Finally, a Summary Line that summarizes both changes.
- If you wish to implement additional changes to the price adjustment, you can simply select the 'Edit' icon located within the Summary Line. For instance, if the customer expresses a desire to further negotiate the price down to $8, effective from January 1, 2024, you can click the 'Edit' icon and adjust the price to $8. Once you click 'Confirm,' the Line Editor will promptly update, reflecting the newly revised price adjustment of $8.
- Now, in the Price Summary panel, the total amount reflects the added 50 quantity as well as the price reduction to $8 starting 01/01/2024.
- Click Save and Exit.
- Finalize the quote into an order, and activate the order.
- In the Lifecycle Manager, in the Revenue Stream of the subscription, you can mouse-over to see the CMRR and ARR of the subscription change starting 01/01/2024, to $1200 and $14,400 respectively, which is $8 per user per month for $150 users.
Use Case #2: Offer a percentage discount to an existing subscription, as well as all its children add-on subscriptions, for a period of time
There are a few reasons why a company may consider offering a percentage discount to a customer's existing subscription, including all its children's add-on subscriptions, for a fixed period of time. For instance,
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Promotion or Special Offer: The company may be running a limited-time promotion or special offer to incentivize the customer to renew their subscription or purchase additional services. Offering a 20% discount for a brief period can make the offer more attractive.
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Customer Retention: If the company is concerned about the possibility of the customer canceling their subscription, providing a discount can be a strategy to retain the customer and prevent churn.
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SCENARIO
Sharp Revenue, one of our valued clients, is currently enrolled in a 12-month subscription plan for the Nue Rise Edition, including 100 user licenses. This subscription, started on September 1, 2023, has a Net Sales Price of $9.90 per user per month. In addition, it includes an add-on subscription for Nue on Salesforce, with a Net Sales Price of $49.99 per user per month.
However, Sharp Revenue has expressed some budgetary concerns for the upcoming quarter. Consequently, a Sales Rep has proactively reached out to propose a 20% discount for a duration of three months, aimed at assisting the customer in managing their expenses and ensuring their continued satisfaction with our services. |
You can follow the steps below to implement this scenario:
- Click on the account ("Sharp Revenue") and click 'Manage Customer Lifecycle" to navigate to the lifecycle manager
- Click "Adjust Price" to give 20% discounts, starting Today, for 3 months. Also check 'Apply to all add-ons'. Click 'Confirm' to add the change request to the change set.
- Check out the change cart into a quote or order.
- In the Line Editor of the quote or order, you can see that both Nue Rise Edition as well as Nue on Salesforce has 20% discounts applied for 3 months.
- If you wish to implement additional changes to the price adjustment, you can simply select the 'Edit' icon located on each chagne line.
- Click 'Save and Exit'
- Finalize the quote into an order, and activate the order.
- When you check out the Revenue Stream in the Lifecycle Manager, you'll see a noticeable drop in the chart that shows the 20% price discount for three months, and then it bounces back up.
Use Case #3: Increase the price of an existing subscription before or on renewal
Oftentimes, increasing the price of a customer's subscription before or on renewal can be a strategic move for a company in various situations. For example, When a company has added new features, improved service quality, or expanded the offering in a way that significantly enhances the value provided to the customer. A price increase can reflect this added value.
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SCENARIO
Customer Sharp Revenue is currently enrolled in a 12-month subscription plan for the Nue Rise Edition, including 100 user licenses. This subscription, started on September 1, 2023, has a Net Sales Price of $9.90 per user per month. In addition, it includes an add-on subscription for Nue on Salesforce, with a Net Sales Price of $49.99 per user per month.
Their subscription is due for renewal on September 1, 2024. Upon renewal, Sharp Revenue wants to add another 20 user licenses.
Recently, the company made a strategic decision to implement a 10% price increase across all its subscription products, effective from July 1, 2024. Consequently, our Sales Rep is going to create a quote for Sharp Revenue, which includes applying the 10% price increase on July 1, 2024, together with the customer's renewal scheduled for September 1, 2024. |
To implement this scenario, you can follow the steps below:
- Click on the account ("Sharp Revenue") and click 'Manage Customer Lifecycle" to navigate to the lifecycle manager
- Click 'Renew' to renew the subscription for another 12 months, which sets the subscription end date to 08/31/2025. Select 'Add 20 Users upon Renewal'. Click 'Confirm' to add to the Change Cart.
- Click "Adjust Price" to give 10% price increase, starting 07/01/2024, till the end of the subscription term. Also check 'Apply to all add-ons'. Click 'Confirm' to add the change request to the change set.
- Please note that when you use the option 'Till the End of the Subscription Term', Nue will automatically calculate the new end of the subscription term by adding the renewal term.
- Click Confirm to add to the Change Cart.
- Click on the Change Cart. You can see 3 change requests available for this customer.
- Click Checkout button to check out the change to a new quote or order.
- In the Line Editor of the quote or order, you can see that the Nue Rise Edition subscription as well as its add-on subscription Nue on Salesforce have the following changes applied:
- Renewed for 12 months, with a new subscription end date of 08/31/2025;
- Added 20 new user licenses in the renewal term, starting 09/01/2024, ending 08/31/2025;
- The prices for both are increased by 10% starting 07/01/2024, affecting both renewed 100 licenses, and newly added 20 licenses.
- Click 'Save and Exit'
- Finalize the quote into an order, and activate the order.
- In the Lifecycle Manager, you can see a clear revenue increase in the Revenue Stream, of both Nue Rise Edition, and its add-on Nue on Salesforce starting 07/01/2024.
User Case #4: Update price tags in the middle of a subscription term
In cases where users need to update price tags during an active subscription term—such as applying a new tiered pricing for a usage-based subscription—they may want to create a change order to update the price tags. Follow these steps to do so:
- In the Lifecycle Manager, navigate to the selected Subscription card, click ‘Adjust Price’, and select “Update Price Tags”. This will add the Update Price Tags change request to the Checkout Cart.
- Proceed to checkout the changes into either a quote or an order. Note that Adjust Price changes that update price tags cannot be checked out together with any other change requests; they must be handled separately. However, if you want to update the price tags while renewing the subscription, you can simply check out a Renew Subscription change and modify the price tags in the same change order.
- In the change order, click the ‘Price Tag’ icon on the subscription summary line to make the desired price tag updates, whether by editing existing tags or creating new ones.
- Activate the change order.
The new price tags will take effect immediately once the change order is activated.
Select Update price tags option when making the Adjust Price change:
Users will receive a messages in the Change Order containing an Adjust Price change for the price tags:
Putting it Altogether
In the Nue Lifecycle Manager, users can perform mid-term subscription price adjustments with ease. They have the flexibility to:
- Set prices to specific amounts.
- Increase prices by defined percentages, optionally applying changes to all add-on subscriptions.
- Offer price discounts by specified percentages, also with an option to apply them to add-on subscriptions.
These adjustments can be time-bound, including options to set prices:
- Until the subscription term ends.
- For a set duration, like 3 months.
- Until a specific date, such as the end of the current year.
When users check out the changes into a quote or an order, , Nue automatically calculates the price changes for each affected subscription, creating "Adjust Price" change line items. The "Net Sales Price" in these lines reflects the absolute price change, with positive values for price increases and negative values for discounts.
Furthermore, these adjustments can be combined seamlessly with other changes, such as renewals, co-terms, and quantity adjustments, all precisely calculated by the Nue Pricing Engine.