> ## Documentation Index
> Fetch the complete documentation index at: https://docs.bango.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Products and product tiers
> Understand how Products and Product Tiers fit into the DVM™ Offer Model, and how to configure upgrade and downgrade options for consumers.
## Overview
Every Offer in the DVM™ is built from two key components: a **Plan** and one or more **Products**. While the Plan defines how and when the consumer is billed, Products define what the consumer actually gets — the digital services they gain access to when provisioned with the Offer.
Defines how the consumer is billed — the billing frequency, phases, price, and lifecycle start trigger. See [Plan Types](/offer-catalog/offer-models) and [Plan Configuration](/offer-catalog/plan-configuration).
Defines what the consumer gets access to — the digital service(s) included in the Offer, the tier of access they start on, and the tiers they can upgrade or downgrade to.
***
## What is a Product?
A Product represents a digital service that a consumer gains access to when provisioned with an Offer — for example, a music streaming service, a video-on-demand platform, or a gaming subscription.
Each Product in the DVM™ is structured into **Product Tiers** — distinct levels of service or value within the same product. For example:
| Product | Tiers |
| - | - |
| Netflix | Standard with Ads, Standard, Premium |
| Disney+ | Standard, Premium |
| Spotify | Individual, Duo, Family |
When building an Offer, a Reseller selects which Product to include and specifies which tier the consumer starts on — this is the **default tier**. The default tier is the level of access the consumer receives when first provisioned with the Offer.
***
## What are Available Product Tiers?
Available Product Tiers are the other tiers within the same Product that a consumer can move to during their subscription — without canceling and recreating their Offer. These are the tiers a consumer can **upgrade** or **downgrade** to from their current tier.
Configuring Available Product Tiers on an Offer enables the upgrade and downgrade capability for consumers provisioned with that Offer. Without this configuration, consumers are locked to their default tier for the lifetime of the subscription.
Each Available Product Tier has an associated **Delta Price** — the price difference between that tier and the default tier. Delta Prices are used to calculate:
* The pro-rated charge issued when a consumer upgrades mid-cycle
* The pro-rated refund issued when a consumer downgrades mid-cycle
* The adjusted renewal price at the next billing cycle
Pro-rated charge and refund calculation applies only when the Billing & Charging capability is licensed. See [Pro-ration](/billing-and-charging/pro-ration) for full details on how amounts are calculated.
***
## How Products fit into the Offer Model
The diagram below shows how a Product with multiple tiers — a default tier and available tiers — sits within an Offer alongside the Plan.
```mermaid theme={null}
flowchart TD
A[Offer] --> B[Plan]
A --> C[Product: Netflix]
B --> D[Phases]
C --> E["Default Product Tier\nNetflix Standard"]
C --> F[Available Product Tiers]
F --> G["Netflix Standard with Ads\nDelta Price: -£4.00"]
F --> H["Netflix Premium\nDelta Price: +£7.00"]
D --> I[Billing schedule and lifecycle]
G --> J[Upgrade / Downgrade target]
H --> J
J --> K["Delta Price used to\nrecalculate billing on tier change"]
```
***
## Default tier vs available tiers
| | Default tier | Available Product Tiers |
| - | - | - |
| **What it is** | The tier the consumer starts on when provisioned | The tiers the consumer can move to during their subscription |
| **Set at** | Offer creation | Configured separately on the Plan after Offer creation |
| **Required?** | ✅ Always required | Optional — only needed if upgrade/downgrade is supported |
| **Delta Price** | Not applicable (this is the baseline) | Required for each available tier — used for pro-ration calculation and adjusted renewal charges |
| **Consumer experience** | Immediate access on provisioning | Consumer can upgrade or downgrade at any time during the subscription |
***
## Example — Netflix Offer with upgrade/downgrade
A Reseller creates an Offer for Netflix with Standard as the default tier, and Standard with Ads and Premium as available tiers.
**Product:** Netflix
| Tier | Role | Monthly price | Delta Price |
| - | - | - | - |
| `NETFLIX_STD_ADS` | Available tier (downgrade) | — | -£13.00 |
| `NETFLIX_STD` | Default tier | £17.99 | — |
| `NETFLIX_PREMIUM` | Available tier (upgrade) | — | +£5.00 |
When a consumer is provisioned with this Offer, they start on `NETFLIX_STD` at £17.99/month. At any point during their subscription they can:
* **Upgrade** to `NETFLIX_PREMIUM` — a pro-rated charge of £5.00 × remaining days factor is issued immediately
* **Downgrade** to `NETFLIX_STD_ADS` — a pro-rated refund of £13.00 × remaining days factor is issued immediately
At the next renewal, the consumer is charged the default tier pricing + full delta price of whichever tier they are on at the time of the subscription renewal.
***
## What's next?
Understand how consumers move between product tiers and how the DVM™ handles the billing adjustment in real time.
Learn how Delta Prices and remaining days in the billing cycle are used to calculate pro-rated charges and refunds on tier changes.
Step-by-step guide to creating an Offer, including product and tier selection.