Graduated Pricing
Graduated Pricing or tiered Pricing is a model where you charge each unit according to the tier it falls into.
| First Unit | Last Unit | Unit Price | Flat Price |
|---|---|---|---|
| 0 | 1000 | $0.3 | $0 |
| 1001 | 5000 | $0.2 | $0 |
| 5001 | ∞ | $0.1 | $0 |
For example, a customer with 6,000 units will be charged as:
(1000 * $0.3) + (4000 * $0.2) + (1000 * $0.1) = $300 + $800 + $100 = $1,200
as each unit is charged according to the tier it falls into.