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Price Drivers Explained

What are price drivers and how do they work

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Written by Amy Mall
Updated over a month ago

What are Price Drivers?

Price Drivers are customisable conditions that determine how a price is calculated for your services. They allow for dynamic pricing based on specific client requirements.

Depending on the type of service, Price Drivers could include things like:

  • Number of transactions per month

  • Company size or number of employees

  • Complexity of the client's financial records

  • Urgency or turnaround time

In Socket, you define these Price Drivers in the back end (e.g., dropdowns, sliders, inputs) and then assign pricing logic to each driver (e.g., £50 per 100 transactions).


This allows users or team members to input facts during the scoping process, and Socket automatically calculates a consistent price based on the pricing logic.

It ensures transparent, consistent, and scalable pricing without manual intervention.


⚙️ To customise and tailor your price drivers, you’ll need to set up your pricing menu in Services & Pricing first.


Types of Price Drivers

Price Drivers are broken down into two configurable parts:

  • Option Type – how the data is collected

  • Calculation – how it affects the price

You can apply as many price drivers to a service as needed.

Option Types

Here are the available option types you can choose from:

  • Numeric – Price per unit

    • Example: “Number of bills per month” → £1.50 per bill

    • Supports tiered pricing setups (e.g., payroll per employee)

  • Boolean – Yes/No toggle

    • Example: “Do you require VAT returns?” → If yes, add £100

  • List – Predefined options with pricing logic attached to each

    • Example: “Level of complexity” → Simple, Medium, Complex

  • Range – Defined price bands based on input ranges

    • Example: “Annual turnover” →

      • £0–£500k = +£0

      • £500k–£1M = +£50

      • £1M+ = +£100

  • Frequency – Defines how often the service is delivered

    • Example: Weekly, Monthly, Quarterly

    • Note: Frequency is always calculated last

  • Hourly Rate – Multiplies a set hourly rate by the number of hours entered

    • Example: 5 hours at £100/hr = £500

Calculation Types

Each driver also uses a Calculation method to define how it affects the base price:

  • Add – Adds a fixed amount to the base price

  • Subtract – Deducts a value

  • Multiply – Multiplies the total so far

  • Divide – Divides the total so far

Example Scenario

Let’s say you’re quoting for a complex weekly bookkeeping service for a limited company with a £2 million turnover.

You set a base price of £5 and use 3 price drivers:

Driver

Option Type

Calculation

Turnover

Range

Add

Complexity

List

Multiply

Frequency

Frequency

Multiply

Pricing logic:

  • Turnover: £500k+ = Add £50

  • Complexity: Complex = Multiply by 2

  • Frequency: Weekly = Multiply by 3

Calculation:

((5 + 50) × 2) × 3 = £330

⚠️ Note: Frequency will always calculate last, regardless of the order the drivers appear in.

With Price Drivers, you can design a pricing model that is not only accurate and consistent, but flexible enough to reflect how your practice works.

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