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.
In the Planon Service Providers solution, Unit pricing can be a useful addition: it can ensure 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 service terms. Because with unit pricing you can implement dynamic pricing ('time-dependent' pricing) and offer volume discounts. |
In short: Unit pricing does not replace a contract in which service agreements were made about time (SLAs), labor hour costs, material costs, subcontractor costs, travel costs and bonus/malus. Rather, the feature is an addition to existing service agreement(s). Both price calculation methods - time/materials and unit pricing - will result in revenues being charged to the customers, with the big advantage that all can be combined in a single contract.