Creating a prorated bundle offer with a subscription
Learn how to create a bundle offer with child product pricing, including subscription components.
A prorated non-subscription child product is the pricing adjustment of a one-time service or add-on bundle offer with a subscription. This adjustment aligns the billing period and cost of the child product with the parent subscription, ensuring consistent and fair pricing.
Managing subscriptions and one-time purchases in a dynamic market can be complicated, especially when mid-term changes or upgrades are needed. To help with this, we have created a feature allowing you to prorate non-subscription child products alongside the parent product. This feature offers flexibility in managing subscriptions and ensures fair pricing for subscriptions and associated one-time purchases. This guide will walk you through using the Prorate Non-subscription Child Products along with the Parent Product toggle feature, streamlining billing adjustments and making subscription management more intuitive and responsive. Whether you want to enhance your subscription model or simplify pricing adjustments, our guide will provide the essential steps and insights to help you maximize the benefits of this feature.
Enable price proration for bundled or add-on child product
Prerequisite: Create a parent subscription before you perform this task.
To enable price proration options for the child product bundled with a subscription:
Follow the instructions for Creating an individual product to create or set up the child product, which bundled together with a parent subscription product
Click Other (Service, Warranty, Entitlement, etc.) on the Product Options page to enable the Price Proration When Bundled with Subscription checkbox.
On the Product Settings page, toggle Prorate Non-subscription Child Products along with the Parent Product on or off.
OFF: Global Commerce only prorates the parent subscription product, while the bundled child service product remains unaffected.
ON: Global Commerce prorates the parent subscription and the bundled child product when calculating the price.
Scenario 1
This scenario illustrates how to handle price adjustments when a subscription plan changes mid-cycle. Understanding these scenarios can help you make informed decisions about billing for initial and upgraded subscriptions. Below are examples of different prorating options to help clarify the process.
You're signing up for an online streaming service. Your annual subscription plan for unlimited streaming is $120 annually. The subscription comes bundled with a child product: a one-time Setup Assistance service for $30, which helps you set up your account and devices.
Let's say you initially subscribed to the streaming service in January. In June, you decide to upgrade to a family plan, adding one more streaming device to your subscription for bedroom viewing. The Prorate Non-subscription child products along with the parent product toggle, when set to OFF, is a key feature that the system uses to calculate the prorated price for the upgraded family plan from June to December ($120 * 6/12 = $60) while keeping the one-time Setup Assistance service price fixed at $30.
Set the toggle to OFF when you configure a child product in the bundled services like a one-time Setup Assistance service and want to upgrade or change your subscription plan. The price of the Setup Assistance remains unchanged, ensuring that you bill the one-time services appropriately.
When you configure a child product and want the subscription and any additional child products, such as bundled services or products (e.g., warranties, add-ons), to be adjusted in price and prorated together, you should set the toggle to ON. This setting ensures a seamless adjustment to pricing whenever you make changes to your subscription.
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