Understanding the Difference Between Products and Rate Plans

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In our platform, services are offered to end-users through a two-tiered system: Products and Rate Plans. Understanding the distinction is key to managing your service catalog effectively, whether you are a direct service provider (a CORE) or a reseller (a VAR).

This article explains what each term means, who creates them, and how they relate to one another.

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What is a Product? (For CORE Accounts)

A Product is the foundational service or item that can be sold. Think of it as the "wholesale" or master template for a service. Products are created and managed exclusively by CORE accounts.

When a CORE creates a Product, they define its fundamental characteristics, which cannot be altered by a reseller. These include:

• Base Features & Description: The core functionality of the service.
• Product Type: Whether it's a primary plan (TRADITIONAL or ADD-ON)
• Default Pricing: A suggested recurring price and setup fee.
• Billing Cycle: The default number of days in a billing period.
• Usage Components: Any bundled usage items, like included minutes, data allowances, or feature counts. The CORE defines the component's unit price and whether a reseller is allowed to set maximum usage limits.

How to manage them: CORE users can create and manage their Products through the administrative interface or by using the service_plan API endpoint with the Create or Edit method, specifying, the product_id.

Analogy: A Product is like a car model designed by a manufacturer. The manufacturer determines the engine size, body style, and standard features.

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What is a Rate Plan? (For VAR/Reseller Accounts)

A Rate Plan is the "retail" version of a Product that is sold to the end customer. Rate Plans are created and managed by VAR (Value-Added Reseller) accounts.

A VAR cannot create a service from scratch. Instead, they select an existing Product made available to them by a CORE and build a Rate Plan on top of it. This allows the VAR to customize the offering for their specific market and customer base.

When creating a Rate Plan, a VAR can typically customize:

• Name and Description: Re-brand the service with a unique name and marketing description.
• Retail Pricing: Set their own recurring price and retail price.
• Discounts: Offer special incentives, such as an autopay_discount.
• Usage Component Maximums: If the CORE's Product includes usage components and allows it, the VAR can set a maximum limit for that component in their Rate Plan (e.g., cap included minutes at 500).

How to manage them: VAR's can create and manage their Rate Plans through their portal or by using the service_plan API endpoint with the Create or Edit methods, specifying the rate_plan_id. 

Analogy: A Rate Plan is like a specific car package offered by a dealership. The dealership takes the manufacturer's base model and creates a retail package with a specific price, a custom warranty (description), and optional add-ons (customized components).

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Summary of Key Differences

Feature	Product (CORE)	Rate Plan (VAR/Reseller)
Who Creates It?	CORE Accounts	VAR/Reseller Accounts
Foundation	It is the base service template.	It is always based on an existing Product.
Purpose	To define a core service for resellers to sell.	To define a retail package for end-customers.
Customization	Defines all base attributes and components.	Customizes the name, description, pricing, and discounts of the base Product.

 

By using this two-level system, COREs can maintain control over their core service offerings while giving their VARs the flexibility to create unique, competitive Rate Plans for their customers.