Pricing Models

With OpenMeter, you can implement various pricing strategies to meet your business needs. In this guide, we'll cover some common pricing models.

#Flat Fees

Flat fee pricing is a simple pricing model where you charge a fixed amount for a product or service. This model is easy to understand and implement, making it a popular choice for many businesses.

#One-Time Fee

One-time fee pricing is a model where you charge customers a fixed amount for a product or service. Typically used as installment fees or setup fees.

You can create a plan with a one-time fee as:

#Recurring Fee

Recurring fee pricing is a model where you charge customers a fixed amount at regular intervals, such as monthly or annually.

You can create a plan with a recurring fee as:

#With Usage Limits

You can also set usage limits for recurring fees. For example, you can allow one million monthly token usage for a monthly $199 recurring charge.

You can create a plan with a recurring fee and usage limits as:

#Usage-Based Pricing

Usage-based Pricing is a model where you charge customers based on their usage of a product or service.

#Per-Unit Pricing

Per-unit Pricing or Pay-As-You-Go is a model where you charge customers based on the number of units they use, as reported by the meter. For example, you can charge customers $0.01 per AI token used. If this customer uses 10,000 tokens, they will be charged $0.01 * 10,000 = $100.

You can create a plan with per-unit Pricing as:

#Tiered Pricing

Tiered Pricing is a model where fees vary between usage levels. OpenMeter supports two types of tiered pricing:

• Graduated Pricing: Charge each unit according to the tier it falls into.
• Volume Pricing: Charge customers based on the highest achieved tier.

#Graduated Pricing

Graduated Pricing or tiered Pricing is a model where you charge each unit according to the tier it falls into.

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.

You can create a plan with graduated Pricing as:

#Volume Pricing

Volume pricing is a model where you charge customers based on the highest achieved tier.

For example, a customer with 6,000 units will be charged as 6,000 * $0.1 = $600 as the highest achived tier is $0.1.

You can create a plan with volume pricing as:

#Flat Prices in Tiers

In OpenMeter you can define per unit or flat fees in each tier. For example, you can charge $500 for the first tier and $0.1 per unit for the rest. This is useful to define overage charges or to bill a flat fee regardless of usage.

For example, if this customer uses 2,000 units, they will be charged as:

(1000 * $0 + $500) + (1000 * $0.1 + $0) = $500 + $100 = $600

For example, if you have a flat fee of $500 in the first tier, the total amount will be $500 when the quantity is 0.

To bill $0 when there's no usage, set the unit price for the first tier and omit the flat price. Let's see the previous example with a $500 flat fee for the first tier and $0.1 per unit for the rest:

For example, if this customer uses 2,000 units, they will be charged as:

(1 * $500 + $0) + (999 * $0 + $0) + (1000 * $0.1 + $0) = $500 + $0 + $100 = $600

but if this customer uses 0 units, they will be charged as:

(0 * $500 + $0) + (0 * $0 + $0) + (0 * $0.1 + $0) = $0 + $0 + $0 = $0

#Overage Fees

Overages are additional charges that customers incur when they exceed their usage limits. We can model overages with graduated pricing as:

Where the first 1,000 units are free, and the rest are $0.01 per unit.

For example, if this customer uses 2,000 units, they will be charged as:

(1000 * $0) + (1000 * $0.01) = $0 + $100 = $100

If you want a flat $500 fee for the first tier, you can set the flat price as follows:

For example, if this customer uses 2,000 units, they will be charged as:

(1000 * $0 + $500) + (1000 * $0.01) = $0 + $500 + $100 = $600

See the graduated pricing example above for more details.