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, this is just for your reference.
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.
When should overage charges be applied?: You will have two options here, either 'Next monthly bill' or 'After each overage charge'.
If you select 'Next monthly bill', all extra usage is added to the client’s next monthly bill. The total overage amount is summed up for the month and added as a line item to the client’s next monthly bill, along with the next month's base monthly billing plan rate.
If you select 'After each overage charge', clients will pay-as-they-go for any overage hours accumulated throughout the month. Once a client’s base hours are used up, each overage booking creates a daily charge that will be billed to the client at midnight following their booking
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. Learn more about how overage is billed here!
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.
If billing overage monthly: Hours 51-60 are added to his next monthly invoice at a peak rate of $18/hr. Hours 61-65 are added to his next 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 next 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)
If billing overage hourly: Any overage hours will be billed to him the same day as the booking(s), based on the overage tier rates set in the plan. If Dan has an overage booking that includes 3 hours of peak time and 5 hours of off peak time, he would be billed $129 ($54 of peak time and $75 of off peak time) at midnight the day of the booking.
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!