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Subscription Management & SaaS Billing: Recurring Payments and Plans

Subscription billing for SaaS: Recurring payments, plan management, and usage-based pricing.

Subscription Management & SaaS Billing

Why Custom Subscription Management?

SaaS business models thrive on recurring revenue – the holy grail of the software business. But standard tools like Chargebee, Recurly, or Paddle are expensive: often 0.5-1% of revenue plus fixed fees. At an MRR of 50,000 EUR, that's 6,000-12,000 EUR per year going to the billing provider. Add limitations with complex pricing models and missing integration into your product logic.

A custom subscription management solution adapts to your business model, not the other way around. We develop subscription management systemswith everything SaaS needs: Flexible pricing models (flat, tiered, per-seat, usage-based), dunning for failed payments with intelligent retry strategies, proration for plan changes, andself-service portals for your customers.

We handle the integration with Stripe, PayPal, or SEPA direct debit. You focus on your product – and keep 100% of your revenue (minus payment processing fees, which you pay with any provider).

Subscription Features

Recurring Billing

Automatic billing monthly, annually, or custom – with Stripe, PayPal, SEPA direct debit, credit card.

Plan Management

Plans, add-ons, upgrades, downgrades, trials, grandfathering – flexibly configurable without code.

Dunning Management

Automatic dunning for failed payments, card update reminders, cancellation flow.

Usage-Based Pricing

Billing by usage: API calls, storage, active users, transactions – with metering and aggregation.

Customer Portal

Self-service: change plan, update payment method, download invoices, reverse cancellation.

Lifecycle Emails

Trial reminders, renewal notices, downgrade warnings, payment reminders – automated and personalized.

Proration

Automatic pro-rated calculation for plan changes mid-billing cycle.

Churn Prevention

Cancellation flow with retention offers, pause option, downgrade alternative.

SaaS Metrics at a Glance

A good subscription system makes your most important KPIs transparent.

MRR

Monthly Recurring Revenue – your monthly recurring revenue, the most important SaaS metric.

Churn Rate

Cancellation rate – what percentage of customers cancel per month? Below 2% is good.

LTV

Lifetime Value – total value of a customer over their lifetime. LTV > 3x CAC is healthy.

CAC

Customer Acquisition Cost – cost per new customer (marketing + sales).

Net Revenue Retention

Revenue development of existing customers through up-/downgrades and cancellations.

ARPU

Average Revenue Per User – average revenue per customer per month.

Pricing Models

Flat Rate

One price for all – easy to understand, easy to sell. Example: 49 EUR/month.

Tiered Pricing

Different packages (Basic, Pro, Enterprise) with different features and limits.

Per-Seat Pricing

Price per user – scales with team size. Example: 10 EUR/user/month.

Usage-Based

Pay per consumption – ideal for APIs, storage, transactions.

Our Approach

Billing is critical – errors cost revenue and customer trust. We approach it systematically.

1

Pricing Strategy

Define pricing model, packages, trials, discounts, and metrics together.

2

Architecture

Design billing engine, payment integration, customer portal, and reporting.

3

Development

Build subscription system, integrate Stripe/PayPal, implement dunning.

4

Go-Live

Migrate existing customers, monitoring, optimization based on data.

Advantages of a Custom Solution

No revenue share to Chargebee, Recurly & Co.
Full control over pricing logic
Custom dunning strategies and retention flows
Integration into your product database and CRM
Arbitrarily complex pricing models supported
Full transparency across all metrics

What Does a Subscription System Cost?

Costs depend on the complexity of the pricing model and required integrations.

  • Basic Billing: 15,000 – 35,000 EUR excl. VAT – Stripe integration, simple plans, invoices
  • With Customer Portal: 35,000 – 70,000 EUR excl. VAT – Self-service, dunning, plan changes, metrics
  • Enterprise: 70,000+ EUR excl. VAT – Usage-based, complex proration, multi-currency, reporting

Break-Even Calculation

Chargebee costs 0.75% + 299 EUR/month from the Scale plan. At 50,000 EUR MRR, that's 674 EUR/month or 8,088 EUR/year. A custom solution for 45,000 EUR pays for itself in 5.5 years. At 100,000 EUR MRR, it's already 2.5 years.

When Is a Custom Solution Worth It?

From approx. 30,000 EUR MRR, a custom solution becomes economically interesting. Below that, Chargebee, Stripe Billing, or Paddle are often the better choice – faster to start, less upfront investment. We advise you honestly.

Custom solution or SaaS tool?

Compare rising license costs with custom development – interactively over 5 years.

Calculate custom software ROI

Frequently Asked Questions

How does dunning work for failed payments?

Automatic retry attempts after 1, 3, 7 days (configurable). Emails to the customer with a link to update their payment method. Escalation to sales. Optional: grace period before cancellation.

Can existing customers be migrated?

Yes, we develop migration scripts for Chargebee, Stripe Billing, Recurly, and other systems. Customer data, plans, and payment methods are transferred – without disruption for your customers.

How is usage-based billing implemented?

Through a metering system that captures usage (API events, storage, users). At the end of the billing period, data is aggregated and converted into an invoice. Optional: real-time usage display for customers.

Discuss Your Subscription Project

Let's talk about your SaaS billing – free and non-binding. We'll show you whether a custom solution makes sense for you.

Frequently Asked Questions

Subscription Management

Billing, Stripe & Dunning

How much does subscription billing software cost?

From around €25,000 excl. VAT for plans, recurring billing and dunning; with usage-based pricing and Stripe/PayPal from €40,000 excl. VAT. We scope after a short workshop.

Can you integrate Stripe or PayPal?

Yes. We integrate Stripe, PayPal and other providers so subscriptions, invoices and dunning run automatically in your application.

Do you support usage-based pricing?

Yes. We implement metered billing, tiered plans and hybrid models so you can offer usage-based and flat-rate plans in one system.

What about dunning and failed payments?

We build retry logic, reminder emails and grace periods so failed payments are handled automatically and churn from payment issues is reduced.

Björn Groenewold – Geschäftsführer Groenewold IT Solutions

Discuss subscription billing

We scope after a short workshop.

Book a call

Faster Clarity

Let's sort out scope, risks, and quick wins.

Ideal when you need to make decisions fast – without months of groundwork.

30 min strategy call – 100% free & non-binding