Spot Billing Leakage
Spot Billing Leakage
Consumption based billing benefits both you and your client.
It makes billing more transparent to your client and gives them a clearer ability to manage consumption.
It also benefits your business, in that it allows you to avoid dangerous bill leakage which over time can critically affect your bottom line.
Consider this scenario : As a business you purchase your bundles at $X, with consumption included of a specific amount. You on-sell this bundle at a comfortable profit and everyone is happy.
However, over time, your client’s consumption increases. This consumption isn’t clear and can go unnoticed. You continue billing at the same rate, but over time your profit can decrease and even become non-existent. This lack of clarity around costs can be very dangerous for any business, and is not a scenario you want to find yourself in.
With consumption based billing it is easy to stay on top of cost versus charges to the client, and increase accordingly as necessary. It is also transparent to the client as to why you are increasing charges.
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