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Overview

Use dimensional pricing (also called matrix pricing) to charge different rates for the same product based on multiple attributes. Instead of creating separate products for each variation, you define a pricing grid where rates vary by dimension combinations such as region, instance type, customer segment, or usage tier.

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How It Works

Dimensional pricing creates a matrix where unit prices are determined by the intersection of two or more dimensions. Each combination of dimension values has a specific rate. For example, you might price compute instances based on:
  • Dimension 1: Region (US-East, US-West, EU, Asia)
  • Dimension 2: Instance type (Small, Medium, Large)
This creates a pricing matrix where each region-instance combination has its own rate:
Instance TypeUS-EastUS-WestEUAsia
Small$0.10/hr$0.12/hr$0.15/hr$0.18/hr
Medium$0.25/hr$0.28/hr$0.32/hr$0.35/hr
Large$0.50/hr$0.55/hr$0.60/hr$0.65/hr

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Common Dimensions

Typical dimensions used in matrix pricing include:
  • Geographic - Region, country, data center location
  • Resource type - Instance size, storage tier, bandwidth level
  • Customer attributes - Segment, industry, contract size
  • Time-based - Peak vs. off-peak hours, day vs. night
  • Usage volume - Quantity tiers combined with other dimensions
  • Service level - Standard, premium, enterprise support tiers

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Use cases

Dimensional pricing is useful when:
  • Regional pricing varies - Different costs or market rates across geographies
  • Product variations exist - Multiple SKUs or configurations of the same base product
  • Customer segmentation matters - Different pricing for different customer types
  • Resource costs differ - Infrastructure costs vary by type or location
  • Market conditions vary - Pricing needs to reflect local competitive dynamics

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Benefits

  • Simplified product catalog - One product instead of dozens of variations
  • Flexible pricing - Easy to adjust rates for specific dimension combinations
  • Accurate cost reflection - Prices can match underlying cost structures
  • Easier maintenance - Update pricing in one place rather than across multiple products
  • Better reporting - Analyze usage and revenue by dimension

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Setting up dimensional pricing

To configure dimensional pricing:
  1. Define your dimensions (e.g., region, instance type)
  2. Identify all possible values for each dimension
  3. Create the pricing matrix with rates for each combination
  4. Configure your usage events to include dimension attributes
  5. Test with sample usage data to verify correct pricing
When sending usage events, include the dimension values as attributes so the system can look up the correct rate from the matrix.

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Example: Cloud storage pricing

A cloud storage provider might use dimensional pricing with:
  • Dimension 1: Storage tier (Hot, Cool, Archive)
  • Dimension 2: Region (US, EU, Asia)
Storage TierUSEUAsia
Hot$0.023/GB$0.025/GB$0.028/GB
Cool$0.015/GB$0.017/GB$0.019/GB
Archive$0.004/GB$0.005/GB$0.006/GB
Usage events would include both the storage tier and region, allowing the system to apply the correct rate automatically.