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How ramp pricing works

Build multi-period contracts so a product's discount and term can change over time without duplicating the product by hand.

Overview

Ramp pricing lets a sales rep quote a multi-period contract from a single recurring product — for example year 1 at a launch discount, year 2 at a smaller discount, then list price until canceled. Quotivity creates one line item per period, keeps them grouped, and sequences billing so later periods start when earlier ones end.

It's the tool for land-and-expand and stepped subscription deals. Without it, reps would clone the product, set billing delays, and keep quantity and price in sync by hand.

How it works

The rep opens Configure Ramp Pricing from the line item's Discount column in Quote Builder:

In the Ramp Pricing panel, the user sets a billing frequency and start, then adds periods. Each period has a length (or Until canceled on the last row) and its own discount — percent or currency:

When they click Apply, Quotivity:

  • Writes the first period onto the original line item
  • Adds a line item for each extra period, delayed so billing is sequential
  • Groups those rows under Ramped pricing with badges such as Year 1 or Quarter 2

A ramp needs at least two periods. Applying a single period leaves a normal line item. Bundles can't be ramped — neither the header nor an option product.

Within a ramp, product identity stays locked together: name, SKU, description, quantity, unit price, cost, billing frequency, currency, and variant. Change one of those on any period and the rest of the group updates. Discount, term, and billing start stay per period.

Recurring revenue and the deal amount

Because later periods bill after the first one ends, they don't all count toward the current run-rate:

  • TCV includes every period — the full contract.
  • MRR, ARR, and ACV use the first period of each ramp (plus any non-ramped recurring items). Summing every period would inflate the run-rate toward TCV.
  • When starting and ending run-rates differ, Quote Builder Summary shows Starting MRR / Ending MRR and Starting ARR / Ending ARR instead of a single MRR or ARR.

Those starting and ending values are also stored on the quote and synced to the deal as Starting ARR, Ending ARR, Starting MRR, and Ending MRR. If Property to set deal amount to is ARR or MRR, the deal amount is the starting (first-period) run-rate, not the ending one.

Optional line items are excluded from these totals, same as other quote calculations.

Example

You sell an annual platform license at $12,000. A new customer gets 50% off year 1, 25% off year 2, then list price until they cancel. The rep ramps that one product into three periods. TCV captures the discounted years plus ongoing value; Starting ARR is $6,000 and Ending ARR is $12,000.