About Unit pricing for products
In the service provider market, contracts are increasingly being concluded between service providers and their customers in which they agree on a unit price (UP) for a product.
The Planon Service Providers solution > Unit pricing can be a useful addition: it ensures that you, as service provider, remain competitive in your market, for both hard and soft services.
 | By implementing the unit pricing functionality, you create an alternative to the default revenue generation for products / materials, which is based on data from material lines and Terms for materials. With unit pricing you can implement dynamic pricing ('time-dependent' pricing) and offer volume discounts. |
In short: Unit pricing does not substitute a contract that includes service agreements related to time (SLAs), labor hour revenues, material revenues, subcontractor revenues, travel revenues, and bonus/malus. Instead, it serves as an enhancement to existing service agreements. Both pricing methods — time/materials and unit pricing — will generate revenues charged to customers, with the significant benefit that they can all be integrated into a single contract.
| | For information about generating 'material' revenues that take into account the principle of product unit pricing, see Service Providers - Back-office operations > Generating revenues > Calculating material revenues when product unit pricing applies. Also see the relevant field descriptions for: Revenue estimation lines, Customer quotation lines, Order revenues and the relevant Service Provider field descriptions in Work Orders > Order lines. |