Title Delivering the lowest B2C monthly price and highest value proposition to Merchant. Introduction

Title

Delivering the lowest B2C monthly price and highest value proposition to Merchant.

Introduction

Hello!

If you are watching this video, then you are probably interested in Fairown’s subscription program.

As you know, the Fairown subscription program allows customers to bundle several products and pay one monthly fee upon renewal.

But how does it work? How are prices calculated? You probably have many more questions. No worries. Let me explain it to you. It's simple.

Calculation logic

To calculate subscription prices we:

1. Need to know base data about products and countries; and
2. then, many calculations will be done in a sequence.

Let’s have a close look at that.

Calculation base data

So let’s say you are a customer and want to buy a MacBook. Since you are afraid that you might break it, you want a warranty as well.

So we have two products in the bundle:

1. 
   MacBook;
   
2. 
   Warranty.
   

To calculate subscription pricing, we need to know some basic information. This falls into three different categories:

1. 
   Product prices:
   

• 
  What is the retail price of your MacBook?
  
• 
  What is the retail price of the warranty?
  

2. 
   Renewal period and default subscription period of the products.
   

The renewal period is when you can renew your Macbook to a newer model.

The predetermined subscription period is the default financing period of this MacBook. This is always precalculated by Fairown for each product you can renew and Fairown keeps it in the residual value database.

3. 
   Pricing-related data:
   

• 
  What is the Subscription service cost as a %?
  
• 
  Do you, as the merchant, have an additional commission agreed upon with Fairown?
  
• 
  What is the country-specific VAT rate?