Create products for contracts
A product is anything a customer can purchase. Products defined in Metronome dictate:
- How a customer is charged for a product. Products can be usage-based, composite (of multiple usage-based products), subscription-based, or fixed.
- How a product is displayed on an invoice. This comes from the product's name.
Each product becomes a single line item on an invoice.
Customers are charged for products through contracts and rate cards, but products can be reused across multiple contracts and rate cards. This simplifies reporting and saves you from repeatedly entering the same data.
Products determine how a customer is charged (for example, which billable metrics impact a charge), but they don't dictate how much a customer pays. For usage-based, composite, and subscription products, prices are set on a rate card, which can be modified on a contract. Fixed products are priced on a contract.
Product types
Every product you create is one of four possible types:
- Usage, variably priced based upon reported customer usage for the period
- Composite, a combination of multiple usage-based products, creating a percentage thereof
- Subscription, a recurring, prorated fixed fee
- Fixed, a set price
Usage products require you set up billable metrics, exactly as you do when using legacy (plan-based) products.
You can create or edit contracts such that they use a different billable metric starting at a certain date. This allows you to change the basis for pricing without changing the base product or having to make contract edits at a specific moment.
Create products
To define products in the Metronome app, go to Pricing & Packaging -> Contract Pricing -> Product list -> click Add new product:
- Give the product a meaningful name that appears on customer invoices.
- Optionally enter any product tags.
- Select the product type.
- For usage-based products, select an existing billable metric.
- For composite products, select the existing products that make up the composite.
- Click Save.
After creating usage-based, composite, or subscription-based products, define a rate card to define their base prices. For fixed products, prices are set when creating a contract.
Update products
A key feature of contracts is the ability to edit products, even when actively in use for customer billing. You can edit the:
- Name
- Tags
- Billable metric
You cannot change the product type.
Product edits can be set to take effect on a certain date. Most commonly you'll use this to switch the billable metric.
To update products in the Metronome app, go to Pricing & Packaging -> Contract pricing -> Product list:
Click on the product to edit.
In the product details pane, click Edit.
In the resulting modal, update the product as needed.
Be certain to set the Starting at value should this change take effect in the future.
Click Save.
Product tags
Metronome supports adding one or more tags to products. Consistent use of tags helps you select products more easily, whether that's when creating a composite product or adding products to a commit or discount.
