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Quotivity Help Center

How ramp pricing works

Build multi-period contracts so a product's discount, pricing-table input, or another stable numeric field and term can change over time without duplicating the product by hand.

This feature requires an Enterprise plan.

Overview

Section titled “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 unit price in sync by hand.

How it works

Section titled “How it works”

The rep opens Configure Ramp Pricing from the line item’s Discount column in Quote Builder, sets a billing frequency and start, then adds periods. Each period has a length (or Until canceled on the last row) and its own value for the stepped field. That field defaults to Discount (percent or currency). The rep can change it to another writable numeric line-item column or the product’s pricing-table property. Quantity and unit price are not available because the price book recalculates them when the quote saves.

The ramp icon only appears on recurring line items — rows that already have a billing frequency. One-time products have no billing periods to step through, so they can’t be ramped. Give the row a Billing Frequency and the icon appears.

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, and neither can one-time line items.

Within a ramp, product identity stays locked together: name, SKU, description, cost, billing frequency, currency, and variant. Change a shared field on any period and the rest of the group updates. Quantity, unit price, the selected ramp property, term, and billing start stay per period.

Volume pricing looks up each period’s tier from that period’s quantity plus any other lines of the same product that are not part of the ramp. Three periods of 9 units stay on the 1–10 tier; they do not price as 27 units. If period quantities differ, each period gets its own tier. A separate line of the same product still counts every ramp period toward its own tier.

Recurring revenue and the deal amount

Section titled “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

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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.

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