All Collections
Understanding slab based pricing in Invoicing module
Understanding slab based pricing in Invoicing module

Work out a pricing strategy such that the pricing of your customers decreases as they buy more from you:)

Sam S avatar
Written by Sam S
Updated over a week ago


When you sell different services to your customers, you would always want to work out a pricing strategy such that the pricing of your customers decreases as they buy more from you. This is how any business would work. 

Our tool allows you to set a Slab-based Pricing structure that allows you to do this automatically. 

The strategy is quite simple. You set certain slabs of Total Ad spend. The moment a customer of yours crosses these slabs, the pricing for that client has reduced.

Before learning how to create an invoice with slab based pricing, we'll let you understand how price slabs work.

What are slabs?

Slabs are adspend (usage) ranges defined in the form of units like ($0-$500). Multiple price slabs are defined in the system for generating charges. In slab based pricing, based on the slabs, price is calculated and invoice is generated.

Simply, define ad spend ranges and set the slab for each range. So that, throughout the range, the same price would reflect. You can also set slabs like - the more the ad spend, the less the price.

How are slabs calculated?

We calculate the slabs based on percentage and flat fee of ad spend.
For example: Refer to the table below and see how slabs are calculated for a client with single and multiple accounts.

Calculation for single account

If the slab defined as 0-1000, the adspend for a client using the AdWords account is $100 and the slab percentage is 20 then the invoice amount would be 20% (100) = $80.

Calculation for multiple accounts

If the adspend records as follows: A1 = $100 (percentage); A2 =  $1500 (flatfee); A3 = $2001 (flatfee) then the generated invoice amount will be 20% (100) + 400 + 800 = $1280 

How to create a slab?

  1. Open Invoicing module.

  2. Click on Invoice Templates drop-down button.

  3. Click on Charge Type Templates.

  4. Click on New Charge Type Template.

  5. Now, enter Slab Name in the first in the first field.

  6. Choose Currency Code.

  7. Add Slab Ranges: Here you can define the slab range like 0 to 500, 501 to 1000 etc.

  8. Choose Charge Type. As shown above, choosing percentage will be % of Ad spend, choosing flat fee will be a fixed number for that range.

  9. Click '+' to add more.

  10. Account Charges: The fixed charges for the selected accounts based on the ad spend. Here, you can choose multiple accounts. These charges will reflect in the future invoices when chosen ‘Charge Type - Slab Based.’                                                                                                                                                                                 For example, a user creates a slab - ‘SME’ by choosing Twitter Ads, Google Analytics accounts with 100 in the ‘Value’ column. Entering 100 in the ‘Value’ box fixes the adspend charge for the selected accounts to 100. This will auto populate in the future invoices (when chosen ‘Invoice Slab - SME’ and ‘Charge Type - Slab Based’ for Twitter Ads, Google Analytics.)

  11. Enter General Charges and Additional Charges if any.

  12. Click on Save.

How to generate an invoice applying price slabs?

  1. After creating a slab, goto new invoice page.

  2. In Invoice Slabs, choose a slab which you've created earlier.

  3. You cannot edit Value if a slab has applied..

  4. Enter data in all fields and click on Save as either Draft(to create later) or Template(to use in future.)

  5. Else, click on Create Invoice.

Did this answer your question?