Blended pricing for contract consolidation of subscription renewals

  • Release version: Australia
  • Updated March 12, 2026
  • 2 minutes to read
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    Summary of Blended Pricing for Contract Consolidation of Subscription Renewals

    Blended pricing is utilized for contract consolidation during subscription renewals, allowing for accurate renewal line pricing based on changes in contract quantities, such as upsells and downsells. This process ensures that the pricing engine effectively consolidates relevant contract lines for renewal purposes.

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    Key Features

    • Contract Line Consolidation: Agents can specify which contract lines to consolidate by enabling the Renewable option. This includes combining active upsell lines and the latest downsell lines for renewal pricing.
    • Renewal Pricing Calculation: The pricing engine aggregates quantities and blends prices using weighted averages based on contributing contract lines, including base price, unit price, and list price adjusted for uplifts.
    • Uplift Handling: Uplifts are represented as percentage increases on the list price, calculated based on the uplifted prices of contributing contract lines.
    • Uplift Configuration: Customers can manage uplift amounts using the Price Increase Defaulting Matrix and set uplift renewal multipliers through system properties.

    Key Outcomes

    By implementing blended pricing for contract consolidation, ServiceNow customers can ensure more accurate renewal pricing that reflects the true value of their subscriptions. This streamlined process supports better financial planning and enhances customer satisfaction by providing clarity on pricing adjustments related to contract changes.

    When selected contract lines are consolidated into a renewal line for renewal purposes, the pricing engine uses blended pricing to calculate the renewal line pricing.

    Overview of renewal pricing in contract consolidation

    Over the life of a subscription, contract quantities can change due to the following:
    • Upsells: Changes to a customer contract that increase its value by adding more quantity, licenses, or new products or services. These changes can result in  one or more new contract lines or an amendment, while the original contract remains in effect.
    • Downsells: Changes to a customer contract that reduce the quantity of a product or service and supersedes an earlier contract line.
    In renewal pricing for contract consolidation, the pricing engine does the following:
    • Finds which contract lines are included in the renewal.
    • Aggregates the quantities for the contract lines in the renewal.
    • Blends prices and uplift increases to determine pricing for the single quote renewal line.
    How contract line changes are handled
    Agents indicate which contract lines are to be consolidated by setting the Renewable option on a contract line. At renewal, active upsell lines and the latest downsell lines that represent the current base quantity are combined to calculate renewal pricing. The context variable Consolidated From Contract Lines identifies a consolidated quote renewal line. Within those consolidated lines, if the Include quantity for renew field is selected, the quantity is used in the price blending.
    How renewal quantity and prices are calculated
    The pricing engine calculates prices on the quote renewal line using  weighted averages, based on the quantities of the contributing contract lines. The following values are blended:
    • Base price
    • Unit price
    • List price (after price increases, such as uplifts)
    How contract lines with uplifts are calculated
    An uplift is a price increase applied at contract renewal, typically expressed as a percentage, which raises the list price above the base price for a given term or period.
    If contributing contract lines have different uplift percentages:
    1. Each contract line’s  uplifted price  is calculated first.
    2. A  weighted average of the uplifted prices  is computed based on the current active contract lines.
    3. The resulting value is set as the  list price  on the renewal line.
    Uplifts in contracts are handled as list price adjustments, where:
    • During blending, the renewal base price is the weighted average of the unit price of the consolidated contract lines.
    • The uplift is reflected in the list price.

    Controlling uplift values in contracts and renewals

    You can configure the following uplift features: