The interworks.cloud platform includes the following models for handling discounts and promotions for your products.

Promotions

Promotions can be used for applying discounts when a customer signs up on a specific period (for example, until end of May) by giving him one or more months for free or discounted. They are active for a specific period and the discount charge can be set to apply across one or more billing cycles. Promotions are published in Storefront and customers can immediately benefit from these.

Promotion Types

Promotion can apply only to recurring products and we support the following types:

• One Time Discounts. For applying a discount for the first billing cycle only
• Recurring Discounts. For applying a discount for subscription time-life
• Limited Recurring Discounts. For applying a discount for a limited period (e.g. for the first two months)
• Monetary Discounts. Allows to apply a discount per unit that is a fixed amount (e.g. 5€ Off). 
• Percentage Discounts. Allows to apply a discount per unit that is a percentage of the charge amount (e.g. 20% Off)

Each promotion is active for a specific period (is defined by setting promotion's start and end date) and applies to a specific set of products and for specific billing cycle(s) of each product. For example, you can have a promotion for a mailbox only if it will be purchased yearly, not monthly.

Customers Restriction

You can have a promotion that can be used from all yours customers (existing and new) or you can limit it to be available only to your new customers. 

“Buy X get y half price” promotions

You can offer this type of promotions by defining a set of pre-requisites products that a customer must own for being eligible for such promotion

Rebate Schemes

Rebates can be used for rebating a customer or reseller based on the revenue he generated in a given period.

Rebate Parameters

For defining a rebate scheme, the following parameters must be set:

• Applies To. This parameter is for defining which invoice items will be used for calculating customer’s rebate. There are two options:
  • All Invoice items. In this case the rebate will be calculated using all the invoices that were generated in a given calendar period.
  • Invoice items of specific products. If the rebate must be given only for the revenue that was generated from specific products, then during sales term definition we specify the target products.
    
    
• Rebate Term. This parameter is for defining how often the rebate will be calculated. You can have an annual contract but you may wish to rebate your customer in a monthly basis.
  
  
• Tiers. This parameter is for defining your discount tiers (e.g. 0-10.000: 3% rebate, 10.000 – 30:000: 7% rebate etc.). The system will use these tiers in order to calculate the rebate amount. The tiers can be applied in scale or continuous mode.

Calculation of Rebate Amount

A rebate term is always executed the last day of the term period (e.g. the last day of the calendar month or quarter) regardless customer’s billing day. The system collects all valid invoice lines for the term period, applies the tiers and generates a credit invoice for crediting to the customer the calculated rebate amount.

For more details, check please Rebate an Account

Price Lists

Price Lists can be used for setting special prices for a specific customer or a group of customers. When adding a product in a price list you can define for which billing cycles the price list can be used. For example, you can have a price list that can be applied only if a customer purchases a monthly subscription of a mailbox, not when he purchases a yearly subscription.

Charge Rules

For setting the unit price of a product in a price list you can use one of the following charge rules:

• Currency Amount. This is the simplest charge rule. In this rule, the amount to charge is the unit price defined in the price list
• Discount Percentage. With this charge rule, the amount to charge is calculated by applying the specified percentage to product's default unit price.
• Markup Percentage. The amount to charge is calculated by applying the specified markup to product's cost price.
• Margin Percentage.  This charge rule is using the desired margin for calculating the amount to charge.

When a customer purchases a product that belongs to the price list that it has been assigned to him, the system automatically calculates the charges using the rules of the price list.

Applying Discounts Manually in Subscription Level

All the previous discount models are used for automatic applying discounts to customer charges. The interworks.cloud platform allows to manually apply a discount to a specific subscription by overwriting system defined charges. A discount can be applied to a subscription either from the beginning of the current billing cycle or from the next billing cycle but not anywhere in the middle.