Annual pricing is a recurring of pricing structure where the product or service is price per unit per year of service. Common examples of annual pricing are software subscriptions and platform fees.
In RevOps, Annual Pricing is not the same as Annual Billing.
The price of your product may capture a year of service, your business may choose to offer quarterly or monthly billing frequency and allow your customer to pay in smaller increments over the entire length of the contract.
Setting up annual pricing
To setup a SKU with annual pricing, we'll first create a SKU and select either "Year" as the pricing model. We'll then enter the annual per unit list price of the product or service.
If the product is tiered per unit, check out this article for setting up tiered, volume pricing.
Next, we'll add a line item description and update the unit name for our product. Once we've saved, we're ready to start using it on our deals!
Quoting with annual pricing
To start quoting, we'll click on "Create new Deal". While on the deal, click on "Add SKU" to create a new line item with our annually priced product. The "Add SKU" button will create a pricing table, titled "Subscription" by default with our SKU as a line item. To learn more about how to adjust the display of this table, take a look at this article.
Now we can adjust the quantity sold and apply a discount.