> ## Documentation Index
> Fetch the complete documentation index at: https://docs.salesbricks.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Ramping Structures

## Overview

Ramping is a pricing strategy which is used to gradually increase the cost of a subscription as the quantity of enabled units grows over the course of a contract.

Let's illustrate how ramping schedules work by pricing a single contract against two different pricing structures: **flat-rate** pricing and **tiered** pricing.

## Flat-rate ramping

<Tip>
  Read more about flat-rate pricing <a href="/quickstart-guide/products-plans-bricks/creating-a-plan#flat-rate">here</a>.
</Tip>

#### Formula for cost calculation

To calculate the subtotal of each ramping period:

`unit price * quantity * duration`

### Example - flat-rate ramping

#### Contract terms

**Start date**: December 14, 2023

**Contract period**: 12 months

#### Ramping schedule

| Ramping period | Start date    | Quantity  |
| -------------- | ------------- | --------- |
| 1st            | December 2023 | 50 units  |
| 2nd            | April 2024    | 100 units |
| 3rd            | July 2024     | 150 units |

#### Pricing structure

\$39 per unit monthly

#### Cost breakdown

| Ramping period | Duration                                      | Cost                                     |
| -------------- | --------------------------------------------- | ---------------------------------------- |
| 1st            | 4 months (December 14, 2023 - April 13, 2024) | \$39 \* 50 units \* 4 months = \$7,800   |
| 2nd            | 3 months (April 14, 2024 - July 13, 2024)     | \$39 \* 100 units \* 3 months = \$11,700 |
| 3rd            | 5 months (July 14, 2024 - December 13, 2024)  | \$39 \* 150 units \* 5 months = \$29,250 |

#### Grand total

\$7,800 + \$11,700 + \$29,250 = **\$48,750**

## Tiered ramping

<Tip>
  Read more about tiered pricing <a href="/quickstart-guide/products-plans-bricks/creating-a-plan#tiered">here</a>.
</Tip>

#### Formula for cost calculation

To calculate the subtotal of each ramping period:

* calculate the cost of each tier: `unit price * qty`
* sum the cost of all tiers and multiply by the duration of the ramping period: `sum of all tiers' costs * duration`

### Example - tiered ramping

For this example, we'll use the same contract terms and ramping schedule as the flat-rate example, except now using a tiered pricing structure.

#### Contract terms

**Start date**: December 14, 2023

**Contract period**: 12 months

#### Ramping schedule

| Ramping period | Start date    | Quantity  |
| -------------- | ------------- | --------- |
| 1st            | December 2023 | 50 units  |
| 2nd            | April 2024    | 100 units |
| 3rd            | July 2024     | 150 units |

#### Pricing structure

| Quantity range | Monthly unit price |
| -------------- | ------------------ |
| 1-39           | \$39               |
| 40-79          | \$35               |
| 80-129         | \$29               |
| 130+           | \$25               |

#### Cost breakdown

<table>
  <thead>
    <tr>
      <th>Ramping period</th>
      <th>Duration</th>
      <th>Cost</th>
    </tr>
  </thead>

  <tbody>
    <tr>
      <td>1st</td>

      <td>
        4 months

        (December 14, 2023 - April 13, 2024)
      </td>

      <td>
        **Units 1-39**: \$39 \* 39 units = \$1,521

        **Units 40-50**: \$35 \* 11 units = \$385

        **Subtotal**: (\$1,521 + \$385) \* 4 months = \$7,624
      </td>
    </tr>

    <tr>
      <td>2nd</td>

      <td>
        3 months

        (April 14, 2024 - July 13, 2024)
      </td>

      <td>
        **Units 1-39**: \$39 \* 39 units = \$1,521

        **Units 40-79**: \$35 \* 40 units = \$1,400

        **Units 80-100**: \$29 \* 21 units = \$609

        **Subtotal**: (\$1,521 + \$1,400 + \$609) \* 3 months = \$10,590
      </td>
    </tr>

    <tr>
      <td>3rd</td>

      <td>
        5 months

        (July 14, 2024 - December 13, 2024)
      </td>

      <td>
        **Units 1-39**: \$39 \* 39 units = \$1,521

        **Units 40-79**: \$35 \* 40 units = \$1,400

        **Units 80-129**: \$29 \* 40 units = \$1,160

        **Units 130-150**: \$25 \* 21 units = \$525

        **Subtotal**: (\$1,521 + \$1,400 + \$1,160 + \$525) \* 5 months = \$23,030
      </td>
    </tr>
  </tbody>
</table>

#### Grand total

\$7,624 + \$10,590 + \$23,030 = **\$41,244**