> ## Documentation Index
> Fetch the complete documentation index at: https://docs.getveles.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Pricing Models
> Understand how each pricing method in Veles calculates price from quantity: flat fee, volume, graduated, stair-step, and percentage of.
When you configure a [pricing plan](/get-started/pricing-and-packaging/creating-a-product#pricing-plans) for a product, each component requires a **pricing method**. The pricing method determines how Veles calculates the final price based on the inputs a rep provides during quoting.
Veles supports five pricing methods. Each works differently, and choosing the right one depends on how you sell the product.
***
## Flat Fee
A single fixed price regardless of quantity. The quantity defaults to 1 -- the product is either included in the quote or it isn't.
**Best for:** Implementation fees, one-time services, fixed-price add-ons, setup costs.
**How it works:** No calculation. The price is the price.
**Example:** A "Standard Implementation" product is set to a flat fee of $5,000. No matter what else is on the quote, the implementation line item is always $5,000.
***
## Volume Lookup
A single rate is applied to the **entire quantity** based on which tier that quantity falls into. All units are priced at the same rate.
**Best for:** Per-seat SaaS licensing, per-unit pricing, ACV-based models.
**How it works:** Veles identifies which tier the total quantity falls into, then multiplies the entire quantity by that tier's rate.
**Example:**
| Tier | Range | Rate |
| ---- | ------- | --------- |
| 1 | 0 - 5 | \$50/unit |
| 2 | 6 - 10 | \$40/unit |
| 3 | 11 - 25 | \$30/unit |
If a rep enters a quantity of **8**:
* 8 falls into Tier 2
* Total = $40 x 8 = **$320\*\*
All 8 units are priced at the Tier 2 rate. The Tier 1 rate is never applied.
Volume pricing creates natural price breaks that incentivize larger deals. A rep can show a buyer that going from 5 seats ($250) to 6 seats ($240) actually costs less -- a useful negotiation lever.
***
## Graduated Lookup
Units are priced **progressively** based on the tier they fall into, like tax brackets. Each tier's units are priced at that tier's rate, and the results are summed.
**Best for:** Usage-based billing, consumption models, utility-style pricing.
**How it works:** Every unit between a tier's lower and upper boundary is multiplied by that tier's rate. The totals from all tiers are added together.
**Example:**
| Tier | Range | Rate |
| ---- | ------- | --------- |
| 1 | 0 - 5 | \$50/unit |
| 2 | 6 - 10 | \$40/unit |
| 3 | 11 - 25 | \$30/unit |
If a rep enters a quantity of **8**:
* First 5 units at Tier 1: 5 x $50 = $250
* Remaining 3 units at Tier 2: 3 x $40 = $120
* Total = $250 + $120 = **\$370**
Compare this to Volume pricing, which would charge \$320 for the same quantity. Graduated pricing always produces a higher total because lower tiers are never discounted retroactively.
### Volume vs. Graduated: when to use which
| | Volume | Graduated |
| ------------------------ | -------------------------------------------------- | -------------------------------------------------------------- |
| **Price at 8 units** | $320 (all at $ 40) | $370 (5 at $ 50 + 3 at \$40) |
| **Price break behavior** | Dramatic -- crossing a tier reprices everything | Smooth -- each additional unit is priced at its own tier |
| **Best for** | SaaS seats where you want to reward larger commits | Usage billing where incremental cost should decrease gradually |
***
## Stair-step Lookup
A **fixed dollar amount** for anything that falls within a tier's range, regardless of the exact quantity. There is no per-unit multiplication.
**Best for:** Platform packages, bucket pricing (e.g., "0-50 employees" plan), tiered flat-rate plans.
**How it works:** If the input falls within the tier boundaries, the flat price for that tier is applied. The quantity doesn't affect the calculation within a tier.
**Example:**
| Tier | Range | Price |
| ---- | ------------- | ------- |
| 1 | 0 - 5 units | \$500 |
| 2 | 6 - 10 units | \$800 |
| 3 | 11 - 25 units | \$1,200 |
* A quantity of **4** costs **\$500**
* A quantity of **5** costs **\$500**
* A quantity of **6** costs **\$800**
* A quantity of **9** costs **\$800**
The price only changes when the quantity crosses a tier boundary.
Stair-step pricing is ideal for products where you sell capacity in buckets rather than individual units. Think "up to 50 employees" vs. "per employee."
***
## Percentage Of
Price is calculated as a **percentage of the value of other products** included in the same pricing option.
**Best for:** Support plans, success fees, platform fees, revenue-share line items.
**How it works:** Veles sums the value of the other line items in the pricing option and applies the configured percentage.
**Example:**
| Other line items | Value |
| --------------------- | ------------- |
| Core Platform License | \$80,000 |
| Analytics Add-on | \$20,000 |
| **Total** | **\$100,000** |
A "Premium Support" product configured as 10% of total = **\$10,000**.
The final deal value including support = \$110,000.
### Tiered percentages
Instead of a single flat percentage, you can define tiers that apply different rates based on the total value of other line items.
**Example:**
| Tier | Deal value range | Rate |
| ---- | ---------------- | ---- |
| 1 | $0 - $ 100,000 | 10% |
| 2 | \$100,001+ | 7% |
On a $150,000 deal: the first $100,000 is at 10% ($10,000) and the remaining $50,000 is at 7% ($3,500). Total support fee = **$13,500\*\*.
### ARR-only calculation
Toggle this option to calculate the percentage against **recurring line items only**, excluding one-time fees.
**Example:** A deal includes $100,000 in recurring licenses and $25,000 in one-time implementation. With ARR-only enabled, a 10% support fee is calculated on $100,000 (= $10,000), not on $125,000 (= $12,500).
This is commonly used for support plans where the fee should scale with recurring revenue, not total deal value.
***
## Comparison at a glance
| Method | Pricing basis | Per-unit math? | Best use case |
| ----------------- | ----------------------------------- | -------------- | --------------------------- |
| **Flat Fee** | Single fixed price | No | Implementation, setup fees |
| **Volume** | Rate x total quantity (single tier) | Yes | SaaS per-seat licensing |
| **Graduated** | Sum of rate x units per tier | Yes | Usage-based billing |
| **Stair-step** | Fixed fee per range | No | Platform packages, buckets |
| **Percentage Of** | % of other line items | No | Support plans, success fees |
***
## Lookup drivers and input scale
Pricing methods that use tiers (Volume, Graduated, Stair-step) rely on a **lookup driver** to determine which tier applies.
**Quantity** (default): The number of units the rep enters. Use this for standard per-seat or per-unit products.
**Custom drivers**: For products where pricing is driven by a metric other than unit count -- like transaction value, construction volume, or credit consumption. The driver value determines the tier and rate, while the order quantity is typically fixed at 1.
**Input scale** simplifies data entry for large numbers. Set it to Singles, Hundreds, Thousands, or Millions so a rep can enter `42.5` instead of `42,500,000`. The scale is applied before tier evaluation.
For full details on configuring lookup drivers and input scale, see [Creating a Product](/get-started/pricing-and-packaging/creating-a-product#lookup-drivers).
***
## Pricing tiers: how boundaries work
For Volume, Graduated, and Stair-step methods, you define tiers using the **boundary table** in the pricing plan. Veles uses **upper boundaries** to set ranges.
| Tier | Upper boundary | Price |
| ---- | -------------- | --------- |
| 1 | 5 | \$50/unit |
| 2 | 10 | \$40/unit |
| 3 | 25 | \$30/unit |
| 4 | ∞ (unlimited) | \$20/unit |
This means: 0-5 is Tier 1, 6-10 is Tier 2, 11-25 is Tier 3, and 26+ is Tier 4.
Veles shows a **live calculation preview** as you build the tier table, so you can verify the math before saving. Changes to tiers on a live product apply to new quotes only -- existing quotes retain their original pricing.
***
## What's next
Configure pricing plans, components, and rep permissions on your products.
Upload reference data for dynamic pricing lookups and formulas.
Apply automatic price adjustments based on deal conditions.
Define what's being counted: seats, API calls, GB, or custom units.