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What are Time-Based Billing Plans?
What are Time-Based Billing Plans?

Learn the ins and outs of Time-Based Billing Plans so that you can offer a simple billing plan to your clients.

Gnomes avatar
Written by Gnomes
Updated over a week ago

How It Works

Set a base monthly rate and hourly overage tiers to incentivize more usage in your kitchen!

Time-Based Billing Plans include the following details:

  • Plan Name: Select a plan name that is descriptive enough for you to distinguish between them. This plan name will be shown to your clients.

  • Description: Add any additional information about what the plan includes. Your client will not be able to see this information.

  • Base Monthly Details: Set the amount to be charged to the client every month for a base number of hours. These base hours do not roll over if they go unused.

  • Overage Tiers: Set the hourly peak (required) and off-peak (optional) rates that will be charged to your client if they book more than the base number of hours on the plan. You can add as many tiers as you'd like or, keep it simple with one tier. Hours booked within each Overage Tier will be charged at that tier's rate.

The Food Corridor tracks the number of hours your clients book throughout the month and charges them accordingly. The rates you set in a Time-Based plan override the rates on your calendars - an hour is seen as an hour, regardless of when and where the client books. Any Overage Tier hours, are added up throughout the month per the peak and off-peak (if applicable) tier rate and appear on the next month’s invoice for billing, along with the base monthly rate for the current month.

Real World Example

Dan’s Donuts has the following Time-Based Plan with two tiers which include peak & off-peak rates:

Dan pays $1,000.00 per month for 50 hours. Last month he booked 65 hours, with the 5 hours after 60 being off-peak hours.

The first 50 hours were included in his base monthly rate that he already paid last month. Hours 51-60 are added to his new monthly invoice at a peak rate of $18/hr. Hours 61-65 are added to his new monthly invoice at an off-peak rate of $15/hr. His overage hours from last month will be charged this month, along with his base monthly rate for this month.

His new monthly invoice will show:

  • $1,000.00 base monthly rate for 50 hours to use this month

  • $180.00 for overage peak hours 51-60 (Tier 1: $18/hr)

  • $75.00 for overage off-peak hours 61-65 (Tier 2 Off-Peak Rate: $15/hr)

    Looking for other plan types? You can also offer your clients Credit Based Billing Plans.

Still have questions about Time-Based Billing Plans? Lets chat!

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