# Manage Pricing

There are two primary ways you can configure a price on a Limio Offer or Add-On to work with Zuora.

As a reminder,

* A **Zuora Rate Plan** is the price defined in the Zuora Billing Product Catalog, which can include the one or multiple Rate Plan incurred by the customer.
  * A Subscription will use a Zuora Product and Rate Plan, as well as an Initial Term and a Renewal Term.
* A [**Limio Offer**](https://docs.limio.com/product/pricing/what-are-offers-and-how-to-configure-them) **or** [**Limio Add-On**](https://docs.limio.com/product/pricing/what-are-add-ons-and-how-to-configure-them) which can be an enriched view of the Zuora Rate Plan, including Display, Billing, and eCommerce Behaviour fields.

Now, here are the options available to you:

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Limio Price</strong> (previously called 'Initial Price')<br><br><em>Price held in Limio with references to Zuora</em></td><td><p><strong>Limio will define the price and override the price in Zuora.</strong> There are two options here:</p><ul><li>You can decide that Limio will only override the initial term in Limio, and then revert to the price in Zuora at renewal.</li><li>You can decide that Limio will set the price for the initial term and all future terms.<br></li></ul><p><strong>Why use this method?</strong><br>This is helpful when you want Limio to be used across multiple of your channels (PLG, sales-assisted, partners...). It reduces product variations in the Zuora catalog by storing only list prices in Zuora, while keeping your channel or promotional pricing in Limio.</p><p>The Limio Price will still be included in each Zuora Subscription, so reporting remains unaffected. Since pricing is managed in Limio, it enables improved web performance during checkout.<br><br><strong>When to avoid this method?</strong><br>Initial Price only works with Zuora's <strong>Flat Fee Pricing,</strong> <strong>Per Unit Pricing, and Tiered/Volume Pricing.</strong><br><br>If you are using other charges models that have a complex pricing setup in Zuora (for example usage-based with tiers), you cannot set the Initial Price in Limio.</p></td><td><a href="/pages/GBvIC8pKhOiAHQL4gr1w" class="button primary">I want to use Limio Price</a></td></tr><tr><td><strong>External Price</strong><br><br><em>Price fully held in Zuora</em></td><td><strong>Limio will let Zuora fully drive the prices, for both the Initial and Renewal Terms.</strong> In this case, Limio Offers will not hold any pricing information and will only refers to the Zuora Product and Rate Plan. This is called External Pricing.<br><br><strong>Why use this method?</strong><br>This is particularly useful for complex pricing not currently supported by Limio (e.g. tiered pricing with overrage, usage-based). You may also prefer to use<br><br><strong>When to avoid this method?</strong><br>Generally, we recommend to use <strong>Limio Price</strong>, as it has better performance and is more flexible for cross-channel selling.</td><td><a href="/pages/lrMxLzu6RHwTekK7KEp3" class="button primary">I want to use External Price</a></td></tr></tbody></table>


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