Variable in app purchase

Question

Created Aug ’23

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I have a service which is paid per unit per month e.g. a monitoring service which charges $1 per monitor per month. Users can add or remove monitors at any time, and are charged at the end of the month, based on the maximum number of monitors they had active during the month. The number of units per month range from 1 to about 100.

I don't see any in-app purchase types that suit this method. I could possibly set up a hundred different levels and users select one based on their expected usage, but that will surely end up with some people using less than they paid for and expecting refunds. Or running out in the middle of a month, again causing problems.

Any ideas on how I can handle this?

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Answer 1

Herry12 OP

Aug ’23

Handling a dynamic and usage-based pricing model like yours can be a bit challenging within traditional in-app purchase structures. However, here's an alternative approach you could consider:

Subscription Tiers with Usage-based Billing:

Tiered Subscriptions: Offer subscription tiers based on the anticipated usage levels. For example:
- Tier 1: Up to 10 monitors
- Tier 2: Up to 25 monitors
- Tier 3: Up to 50 monitors
- Tier 4: Up to 100 monitors
Usage Tracking: Implement a system that tracks the actual usage of monitors by each user throughout the month.
Usage-based Billing: At the end of the month, calculate the user's total usage based on the highest number of monitors they had active during the month. Charge them according to the appropriate tier's pricing.
Prorated Charges: For users who add or remove monitors during the month, prorate the charges based on the time each monitor was active.

Benefits of this approach:

Users can choose a subscription tier that aligns with their expected usage, minimizing overpayment.
Prorated charges ensure fair billing for users who add or remove monitors.
It simplifies the pricing structure by offering a limited number of subscription tiers.
The concept of tiers can be easier for users to understand compared to custom pricing for each unit.

Potential Challenges:

Educating Users: Clearly communicate the tiered pricing model and how usage-based billing works to users to avoid confusion or dissatisfaction.
Technical Implementation: Developing a robust usage tracking and billing system can be complex and might require significant development effort.
Subscription Management: Implementing a smooth system for users to upgrade/downgrade their subscription tiers and manage their monitors is essential.

Remember that any changes to your pricing structure should be communicated transparently to existing and potential users to ensure trust and customer satisfaction.

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Answer 2

gazza23456 OP

Aug ’23

Thanks for your inout, that is probably the way I will have to go. I am also considering creating a consumable called "Monitor / Month" and at the end of each month, sending the user a notification with their usage last month and requiring then to purchase the appropriate number to continue their service - essentially buying consumables in arrears. That is how our present web service works, I just don't know if Apple will approve it?? That does mean that there is the possibility that a user will use for a month and then not pay, but I am willing to wear the cost of that.

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