Consumption-based pricing

Consumption-based pricing is a pricing strategy where customers are charged based on how much they actually use a service or product, rather than a fixed price. This means if you use more, you pay more; if you use less, you pay less. Commonly seen in utilities like electricity, or software services that charge based on usage, this model allows for flexibility and can result in lower costs for users who don’t need constant access. It aligns the cost directly with consumption, making it a fair approach for both companies and customers.