Renewal Pricing

Renewal Pricing allows you to control how the price of a subscription changes during renewals. It helps you maintain flexibility when it comes to managing subscription renewals. Instead of manually updating prices for every subscription renewal, you can set renewal pricing preferences that apply automatically during renewals. This helps reduce operational efforts and saves time for your team. Let’s try to understand this using a scenario.

Let’s explore the different ways you can apply renewal pricing to your subscriptions.

Scenario: John manages subscriptions for an online learning platform. He recently updated the prices of his plans and addons to reflect the new course content and features. With Zoho Billing, John can retain the same price he provided initially for his existing loyal customers and use the updated pricing for newer customers during renewals.

Retain Existing Prices

You can select Retain Existing Prices to retain the same price that was set when the subscription was created for the upcoming renewals. The prices will remain unchanged even if updates are made to the prices of plans, addons, or price lists.

Use Latest Prices

You can select Use Latest Prices to apply the most recently updated prices of the plans, addons, or price lists for the upcoming renewals. This allows you to automatically apply the most recent prices of the associated plans, addons and price lists to renewals.

Configure Renewal Pricing

You can configure default preference or individually configure renewal pricing for each subscription. Here’s how:

Scenario: Brandon runs a subscription business with a large customer base and wants to reduce manual effort by setting a renewal pricing method at the organization level, so all subscriptions follow the same rules automatically. However, for a few loyal customers, he wishes to offer special renewal pricing. Zoho Billing makes this easy by allowing him to configure default renewal pricing for the entire organization while also enabling individual overrides for selected customers, ensuring both efficiency and flexibility in managing renewals.

At Organization Level

You can set a default renewal pricing preference for all the subscriptions you create at the organization level. Here’s how:

Log in to your Zoho Billing organization.
Go to Settings at the top right corner of the page.
Select General under Subscriptions.
Scroll to Renewal Pricing and choose how you want to handle renewals in your organization; Retain Existing Prices or Use Latest Prices.

At Subscription Level

You can set renewal preferences while creating or editing individual subscriptions. Set your preferred method of Renewal Pricing under Subscription Term. You can choose to either retain the existing prices or use the latest prices of the associated plans, addons or price lists.

Here’s how you can apply renewal pricing to your individual subscriptions:

Go to Subscriptions under the Sales module on the left side bar.
Create or edit an existing subscription where you would like to configure the renewal method.
Enter all the necessary details.
Scroll to Renewal Pricing under Subscription Term, and set your preferred renewal method.
Click Continue and preview your subscription summary.
Click Create or Update to save.

Note: While you edit a subscription and configure a new renewal pricing method, you can choose when the changes must be applied. Select Immediately to apply the changes on the same day; a credit note or invoice will be created for the prorated amount, or select End of this term to apply the changes on the next renewal cycle.

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