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In Stripe, a Product represents what you sell. This could be a physical good, a service, or, in our case, a feature or access level for your SaaS application.

A Price defines how much a product costs, in what currency, and whether it's a one-time payment or recurring subscription. Together, they form the foundation for processing payments.

For simple setups, you can define products directly in the Stripe Dashboard. This is great for getting started quickly and understanding the concepts.

• Navigate to Products in your Stripe Dashboard.
• Click + Add product.
• Enter a Name (e.g., "Premium AI Access") and optionally a Description and Image.

Once a product is created, you need to add a price to it. A product can have multiple prices.

• On the product details page, scroll down to the Pricing section.
• Click + Add another price.
• Specify the Amount, Currency (e.g., USD), and set Billing period to "One-time" for this lesson.

While the dashboard is useful, a real SaaS application needs to create and manage products and prices programmatically. This allows for:

• Automation: Create products on the fly.
• Dynamic Pricing: Adjust prices based on user segments or promotions.
• Integration: Link directly with your application's backend logic.

To interact with Stripe's API, you need your secret API key and the official Stripe client library. We'll use Python for our examples.

Ensure you have your STRIPE_SECRET_KEY from the Stripe Dashboard (Developers > API keys).

Now, let's create a product using the Stripe API. We'll specify its name, description, and set it as active.

Run this code to see a new product appear in your Stripe Dashboard!

After creating a product, we need to define a price for it. For one-time payments, we specify the unit_amount in cents and set recurring=None.

The price must be linked to an existing product using its ID.

When creating a price via API, these parameters are crucial:

• product: The ID of the product this price belongs to.
• unit_amount: The price amount in the smallest currency unit (e.g., cents for USD).
• currency: The three-letter ISO currency code (e.g., 'usd', 'eur').
• recurring: Set to None for one-time payments. For subscriptions, this would be an object with details like interval.
• lookup_key (optional): A custom string you can use to retrieve prices without knowing their Stripe ID.

You can retrieve products and prices by their IDs using stripe.Product.retrieve(product_id) and stripe.Price.retrieve(price_id).

Important: Stripe Prices are immutable. Once created, you cannot change their amount or currency. If you need to change a price, you must create a new one and deactivate the old one.

Products, however, can be updated (e.g., their name or description).

Great job! You've learned how to define and manage products and their associated one-time prices in Stripe.

• Products represent what you sell.
• Prices define how much something costs.
• You can manage them via the Stripe Dashboard or programmatically via the API.
• Key API parameters include product ID, unit_amount (in cents), currency, and setting recurring=None for one-time charges.
• Remember that Stripe Prices are immutable!

Next, we'll use these products and prices to implement Stripe Checkout sessions.