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Business patterns

Usage-based pricing

The price changes with the amount a customer actually uses.

Worked exampleA file-conversion service
Files submitted
120
Failed conversions
20
Billable files
100

In this example, only successful conversions count. Make the unit and retry rules clear before a customer starts.

An original hypothetical scenario by Druumen, illustrating the analysis.

When to use it

When usage can be measured reliably and customers understand how the unit relates to value.

Key elements

Metering unit, unit or tiered prices, usage records, bill transparency, and unit delivery cost.

A question to start with

Can customers estimate a bill before using the service and check it afterwards?

Worked example

A file-conversion service

Charge by successfully converted file. Decide whether failed retries count, then show sample bills for typical usage and check that customers understand them.

An original hypothetical scenario by Druumen, illustrating the analysis.

Your next step

Choose a unit you can explain. Compare customer bills and service costs at small, medium, and large usage levels.

Methods & further reading

Stripe · Usage-based billing