Per-use

The term 'per-use' describes a pricing model, often related to digital services or resources, where a customer is charged based on the actual amount of a resource they consume or utilize. This contrasts with flat-rate subscriptions or upfront purchases. Common resources metered 'per-use' include computational power, storage space, API calls, or individual product uses. The cost incurred 'per-use' is generally determined by the consumption volume, providing flexibility and aligning cost directly with value received. This model often encourages efficiency as overconsumption directly translates to higher costs.

Per-use meaning with examples

• Our cloud computing platform operates on a per-use basis. Clients are billed only for the CPU cycles, memory, and storage they actively utilize. This ensures smaller companies don't pay for idle resources, and larger businesses scale effortlessly. Consumption is meticulously monitored, enabling real-time tracking and optimization of spending. This billing model ensures maximum value.
• The software as a service (SaaS) company offered 'per-use' pricing for its API. Developers are charged based on the number of API calls made. This model is ideal for variable workloads, such as e-commerce platforms during peak seasons. It encourages optimization, as developers are incentivized to minimize API usage, lowering costs and improving system efficiency.
• A data storage company offered 'per-use' storage fees for its object storage service. Customers pay only for the gigabytes of data they store and retrieve. This offers cost advantages as businesses don't pay for empty storage. The model encourages economical usage of storage space for backups, long-term archives, and large datasets that fluctuate over time.
• The printer rental service provides 'per-use' charging. Customers are billed based on the number of printed pages. It also offers a variety of paper and toner options. This approach eliminates the need for the business to buy, maintain, and store its own printers. This approach is cost-effective for businesses with fluctuating printing requirements.
• The online video streaming platform adopted a 'per-use' model for certain premium content. Viewers pay per individual movie or episode instead of a subscription. It provided audiences more flexible consumption. This allows customers to watch only what they are interested in, providing a more attractive alternative to bundled subscriptions and increasing monetization.