How to design a Pay-Per-Use solution?

Can your customer's problem be solved in a better way with pay-per-use? Yes! But where do you start? 

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Step 1

Determine what assets to offer on a pay per use model. Then, analyse the specificities of these assets: What is their average life span? What's their second-hand market?

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Step 2

Build a pricing model based on usage behaviours and decide how to charge your customers: via a combination of fixed and usage-based fees or 100% variable fees (which means no use no pay).

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Step 3 

Take into account the different risks including: performance, insolvency, cash, obsolescence, balance sheet and revenue recognition risks. And of course, understand how to mitigate these risks.

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Step 4

Track usage to accurately charge your customers. How to collect, analyse and act on this data? And finally think about how you are going to collect payments? 

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We are deploying such models for several B2B organisations, contact us to learn from our best practices. 

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