Bundle Pricing and MRR Allocation
Bundle Pricing and MRR Allocation: When a subscription is sold as a bundle (a single SKU containing multiple products, features, or services at one price), individual line items within the bundle have no explicit price. MRR must still be allocated to each component for accurate reporting of expansion, contraction, and churn at the item level.
Formula
Item MRR = (Item SSP / Sum of all item SSPs) × Bundle Price Common Mistakes
- Allocating equally across items regardless of value
- Using cost as a proxy for value (low-cost items may have high customer value)
- Not updating SSPs when standalone pricing changes
- Treating the entire bundle as a single unit (hides component-level movements)
Sources
GASP Standard v1 · Last updated