Bundled Pricing Setup
Configure bundled pricing models in Dynamics 365 Customer Service to offer customers subscription packages with included usage allowances and overage pricing. This capability enables you to create flexible pricing structures that combine base subscription fees with usage-based billing.
What is Bundled Pricing?
Bundled pricing allows you to offer customers subscription packages that include:
- Base subscription fees - Fixed monthly or annual charges for access to services
- Included usage allowances - Zero-rated usage up to specified limits (in-bundle)
- Overage pricing - Specific pricing for usage beyond included allowances (out-of-bundle)
This model is ideal for services like API calls, data processing, storage, or any metered usage where you want to provide value through included allowances while generating additional revenue from high-usage customers.
Business Benefits
- Predictable revenue from base subscription fees
- Customer value through included usage allowances
- Revenue upside from overage charges
- Flexible pricing to accommodate different customer segments
- Simplified billing with clear usage boundaries
Prerequisites
Before setting up bundled pricing, ensure you have:
- Dynamics 365 Customer Service environment access
- Product Owner or Account Manager security role
- Customer Management application access
- Understanding of your billing integration with APEX platform
Changes to subscription templates and pricing affect active subscriptions. Always test configurations in a sandbox environment before applying to production.
Key Concepts
Subscription Templates
Templates that define the structure, pricing, and billing rules for subscription packages. They serve as blueprints for creating customer subscriptions.
In the Dynamics 365 interface, Subscription Templates are referred to as "Contract Templates".
Renewal Products
Products that define the recurring charges for subscription renewals.
Price Tiers
Pricing structures that define different rates based on usage levels, enabling in-bundle (zero-rated) and out-of-bundle (priced) usage.
Billing Integration
How subscription templates integrate with the APEX billing system for automated invoice generation and payment processing.
Step 1: Create Subscription Template
Subscription templates define the foundation of your bundled pricing model.
1.1 Navigate to Subscription Templates
- Open Dynamics 365 Customer Service
- In the left navigation, select Customer Management app area
- In the area dropdown, select Admin
- Click on Contract Templates
- Click + New to create a new template
In Dynamics 365, these are called "Contract Templates" but we'll refer to them as Subscription Templates throughout this documentation. The entity type will show as "Lightstone Contract Template" in the interface.
1.2 Configure Basic Template Information
Fill in the essential template details on the General tab:
- Required Fields
- Optional Fields
| Field | Description | Example |
|---|---|---|
| Name | Descriptive name for the template | "6 Months Standard Subscription" |
| Cost | Base cost for the subscription | R0.00 (if using tiered pricing) |
| Renewal Cycle | How often the subscription renews | Half-Yearly |
| Billing Day | Day of month when billing occurs (1-31) | 24 |
| Start Date | When the template becomes effective | 8/30/2023 |
| Field | Description | Example |
|---|---|---|
| End Date | When template expires | Leave blank for no expiry |
| Description | Detailed description of what's included | "6 Months Standard Subscription provides access to the standard subscription which includes 40 Inclusive Toolkit Reports per month for 6 month from date of subscription." |
| Product Unit | Unit of measure | report |
1.3 Configure Billing Settings
The basic billing settings are configured on the General tab:
| Setting | Field | Description | Example |
|---|---|---|---|
| Billing Frequency | Renewal Cycle | How often customers are charged | Half-Yearly |
| Billing Day | Billing Day | Day of month when billing occurs | 24 |
| Signup Billing | Signup Billing Amount | How initial billing is calculated | Pro-Rata |
| Start Date | Start Date | When template becomes available | 8/30/2023 |
| End Date | End Date | When template expires | Leave blank for ongoing |
The Renewal Cycle and Billing Day determine when APEX generates invoices and attempts payment collection. The Pro-Rata setting ensures customers are billed proportionally for partial billing periods.
Step 2: Set Up Renewal Products
Renewal products define what customers pay for subscription renewals and are configured on the Renewal Products tab.
2.1 Add Renewal Products
- In your Contract Template, click on the Renewal Products tab
- Click + Add Existing Product to link an existing product
- Select the product from the list (e.g., "6 Months Standard Subscription")
- The product will appear in the Renewal Products table
You'll see the linked renewal product with details such as:
- Product Code: PR01400CT16
- Name: 6 Months Standard Subscription
- Product Group: Toolkit V2 Subscriptions
- Display Order: 100
- Visibility: Private
2.2 Configure Product Pricing
If you need to create a new renewal product:
- In the left navigation, select Customer Management app area
- In the area dropdown, select Admin
- Click on Products
- Click + New Product
- Configure the basic product details
- Set up pricing in the product's Price Lists section
- Simple Pricing
- Tiered Pricing
For straightforward pricing without volume discounts:
| Field | Value |
|---|---|
| List Price | R99.00 |
| Standard Cost | R0.00 |
For volume-based pricing tiers:
| Quantity Range | Price Per Unit |
|---|---|
| 1 - 5 licenses | R99.00 |
| 6 - 20 licenses | R89.00 |
| 21+ licenses | R79.00 |
2.3 Link to Subscription Template
The Renewal Products are already linked when you add them in Step 2.1. You can configure additional settings:
| Setting | Description | Typical Value |
|---|---|---|
| Display Order | Order products appear to customers | 100 |
| Visibility | Who can see this product | Private/Public |
The renewal products shown in the Renewal Products tab are the products that will be billed to customers according to the template's renewal cycle and billing day.
Step 3: Configure Tiered Pricing for Bundled Usage
Set up tiered pricing to handle in-bundle and out-of-bundle usage on the Pricing tab.
3.1 Access Tiered Pricing
- In your Contract Template, click on the Pricing tab
- You'll see the Tiered Pricing section with a Tiers table
- Click + New Price Tier to add pricing tiers
- Click + Add Existing Price Tier to use existing tiers
3.2 Configure Price Tiers
The interface shows a table with the following columns:
- Range Start: Starting quantity for the tier
- Range End: Ending quantity for the tier
- Start Date: When the tier becomes effective
- End Date: When the tier expires
- Price: Price per unit for this tier
Example tiered pricing configuration:
- Tier 1: In-Bundle (Free)
- Tier 2: Overage Pricing
| Field | Value | Description |
|---|---|---|
| Range Start | 0 | Starting from zero usage |
| Range End | 45 | Up to 45 units included |
| Start Date | 4/1/2023 | Effective date |
| End Date | Leave blank | No expiry |
| Price | R0.00 | Zero cost (included) |
| Status | Active | Currently available |
| Field | Value | Description |
|---|---|---|
| Range Start | 46 | After included allowance |
| Range End | 2,147,483,647 | Maximum range |
| Start Date | 4/1/2023 | Effective date |
| End Date | 3/3/2024 | Tier expiry |
| Price | R20.00 | Overage rate per unit |
| Status | Active | Currently available |
3.3 Create New Price Tiers
To create a new price tier:
- Click + New Price Tier
- Configure the tier details:
| Field | Description | Example |
|---|---|---|
| Start Date | When tier becomes effective | 4/1/2023 |
| End Date | When tier expires (optional) | --- |
| Status | Tier availability | Active |
| Currency | Billing currency | South African Rand |
| Price | Cost per unit in this tier | R0.00 |
| Range Start | Starting quantity | 0 |
| Range End | Ending quantity | 45 |
| Priority | Tier processing order | Highest |
- Add the tier's Products by clicking Add Existing Product
- Select products that use this pricing tier (e.g., "Property Report", "Estate Report")
Set the Priority to "Highest" for your primary pricing tiers to ensure they are processed first when determining applicable pricing.
Step 4: Integration with APEX Billing
Configure how your subscription template integrates with the APEX billing system.
4.1 Subscription Billing Flow
When customers subscribe to your bundled pricing template:
Step 5: Testing Your Configuration
Validate your bundled pricing setup before going live.
5.1 Create Test Subscription
- In the left navigation, select Customer Management app area
- Under Contracts, click on Contracts
- Click + New to create a new subscription
- Select your subscription template (shown as Contract Template in Dynamics 365)
- Choose a test customer account
- Complete the subscription setup
5.2 Simulate Usage Scenarios
Test different usage patterns to verify pricing:
- Low Usage (Under Bundle)
- High Usage (Over Bundle)
Test Scenario: Customer uses 5,000 reports
Expected Result:
- Base subscription fee: R99.00
- Usage charges: R0.00 (within bundle)
- Total: R99.00
Test Scenario: Customer uses 50 reports
Expected Result:
- Base subscription fee: R99.00
- In-bundle usage (45 reports): R0.00
- Overage usage (5 reports): R100.00
- Total: R199.00
5.3 Validation Checklist
Confirm these items work correctly:
- Subscription creates successfully from subscription template
- Renewal product appears on customer account
- Usage tracking records transactions
- Pricing tiers calculate correctly
- Invoices generate with proper amounts
- APEX billing integration functions
- Renewal cycles trigger appropriately
Common Configuration Examples
Example 1: Toolkit Report Bundle
Business Model: Property data platform offering report access
| Component | Configuration |
|---|---|
| Base Plan | R99/6 months for Standard tier |
| Included Usage | 45 reports per billing period |
| Overage Rate | R20.00 per additional report |
| Billing Cycle | Half-yearly on the 24th |
Example 2: Data Processing Service
Business Model: Analytics platform with data processing limits
| Component | Configuration |
|---|---|
| Base Plan | R199/month for Business tier |
| Included Usage | 100GB data processing per month |
| Overage Rate | R2.00 per additional GB |
| Billing Cycle | Monthly on customer's sign-up anniversary |
Example 3: Multi-Tier Storage Service
Business Model: Cloud storage with multiple usage tiers
| Component | Configuration |
|---|---|
| Base Plan | R49/month for Standard tier |
| Tier 1 (Included) | 0-500GB at R0.00/GB |
| Tier 2 (Overage) | 501-2,000GB at R0.10/GB |
| Tier 3 (High Volume) | 2,001+GB at R0.05/GB |
Troubleshooting
Common Issues and Solutions
Issue: Subscription Template Not Visible
Symptoms: Template doesn't appear in dropdown when creating subscriptions Solution:
- Check template status is "Active"
- Verify your security role has access to subscription management
- Ensure template validity dates include current date
Issue: Usage Not Tracking Correctly
Symptoms: Usage amounts don't match expected values Solution:
- Verify usage product is properly configured
- Check unit of measure settings
- Confirm integration endpoints are receiving usage data
Issue: Pricing Tiers Not Applied
Symptoms: All usage billed at same rate regardless of quantity Solution:
- Check price list item quantity ranges don't overlap
- Verify effective dates on price list items
Issue: Renewal Billing Fails
Symptoms: Subscriptions don't generate renewal invoices Solution:
- Check renewal product is active and priced
- Verify billing day configuration
- Confirm APEX integration settings
Best Practices
Template Design
- Use clear naming conventions that describe the service and tier level
- Document included allowances prominently in template descriptions
- Plan for scalability by designing templates that can accommodate growth
Pricing Strategy
- Research competitive pricing before setting overage rates
- Consider customer segments when designing bundle sizes
- Build in margin for potential pricing adjustments
- Test different price points with pilot customers
Billing Management
- Monitor usage patterns to optimize bundle sizes
- Set up alerts for customers approaching usage limits
- Provide usage dashboards for customer self-service
- Review and adjust pricing based on actual usage data
Customer Communication
- Clearly explain what's included in bundles
- Provide advance notice of usage limits and overage charges
- Offer multiple bundle options to meet different needs
- Send regular usage reports to help customers manage consumption
Next Steps
After setting up bundled pricing:
- Monitor Performance - Track subscription adoption and usage patterns
- Gather Feedback - Collect customer input on pricing and bundle sizes
- Optimize Offerings - Adjust bundles based on actual usage data
- Expand Templates - Create additional subscription templates for different customer segments
- Automate Notifications - Set up alerts for usage thresholds and renewal reminders
Consider creating a customer-facing usage dashboard that shows current consumption, remaining bundle allowance, and projected overage charges. This transparency helps customers manage their usage and reduces billing disputes.
Related Capabilities
- Billing Overview - Core billing system functionality
- Subscriptions - Subscription management features
- Products - Product catalog configuration
- Pricelists - Advanced pricing management
For additional support with bundled pricing configuration, contact your system administrator or refer to the Dynamics 365 Customer Service documentation.