Block pricing divides usage into fixed blocks and assigns a price to each block rather than a per-unit rate. Unlike tiered pricing, the price applies to the entire block, not just the units within that tier.

Example: A messaging platform charges $50 for the first 10,000 messages, $40 for the next 10,000 (11,000-20,000), and $30 for the next block (21,000-30,000). A customer sending 25,000 messages pays $50 + $40 + $30 = $120.