Fixed costs , also referred to as average tariff or linear level , referring to a single fixed fee pricing structure for service, regardless of usage. More rarely, the term may refer to a tariff that is not different from usage or usage time.
Video Flat rate
Benefits
- A business can develop a reliable position in the market, because consumers have a good price before the service is done. For example, a technician can charge $ 150 for his workforce.
- Potential costs may be closed. This service may result in inevitable costs such as the parts needed to correct any problems or items needed to complete an order.
- No restricted structures are required, as the price system can be customized to fit the business that uses it. Management can determine the price that best suits the purpose, effort, cost, etc.
Maps Flat rate
Loss
- Fixed prices limit the company's ability to meet the needs of every consumer, and people are looking for cheaper alternatives.
- The price-fixing competition is thicken, with other companies in the same industry competing for the lowest price, and intense competition takes place.
- Inflation can cause unprecedented losses, and companies have to raise costs to offset costs.
Post
There are fixed rates in the postal service, with respect to the delivery of goods. Shipping company uses various forms of post, box or envelope, to avoid having to weigh the goods. Direct costs allow consumers to identify costs and eliminate the hassle of estimating costs for goods.
The United States Postal Service offers an average price for packages that sell various shipping options varying in size and shape. Which provides consumers with various options in advance, creating a sense of ease. When shipped in higher volumes, this saves money but there is a problem if the fixed rate and regular delivery system are used simultaneously.
Ads
Fixed rate also goes into ads. Buying ads on websites like Facebook, Twitter and YouTube are sold at a fixed rate on the size (with additional costs for pictures and posts) and advertising duration (additional video costs). Advertise on YouTube at a fixed price of $ 0.30 per view. When someone walks on the YouTube homepage, search page, or wherever the ad is running, the cost is $ 0.30.
Merchants
Merchants like electricians, plumbers, and mechanics, also often charge a flat rate to cover their work for their services. In a survey in 2014 in Australia, the average rate of labor for a painter was $ 39.92 per hour.
Telephony
American telecommunications companies generally offer fixed rates to residential customers for local phone calls. However, the regular rate or Message Rate is advantageous for those who only make a few short calls per month. Flat rates are rarely outside the US and Canada until about 2005, but have since been extended in Europe for local and long distance calls and are now also available for mobile phone services, both for traditional GSM/UMTS voice calls and for Mobile VoIP.
Most VoIP services are effectively a flat-rate phone service because only broadband internet fees are payable for PC-to-PC calls, and the call itself is free. Some PC-to-phone services, such as SkypeOut, offer fixed rates for national calls to landlines.
Television
Premium television or Pay TV usually charges a fixed monthly fee for channel or bundle or "tier" channels, but some cable television companies also offer Pay per view price.
Internet
For Internet service providers, fixed tariffs are access to the Internet at all hours and days of the year (linear tariff) and for all telecommunication operator (universal) customers at fixed and low rates.
Flat rates are common in broadband access to the Internet in the US and many other countries.
A tariff rate is a linear level class, distinct from a flat rate, in which users are charged by upload and upload (data transfer). Some UMTS GPRS/data access to the Internet in some European countries has no fixed price, following the traditional "meter mentality". Therefore, users prefer to use a fixed network (with narrow access or broadband) to connect to the Internet.
A bumpy level is not a linear rate, as Internet surfers pay a fixed monthly price to use the connection only during certain hours of the day (ie only in the morning or, more often, just at night).
Electricity
Fixed rates for electricity differ from that for other services. Electric utilities that charge fixed rates for electricity do not charge different rates based on the customer's demand on the system. Customers pay the same amount whether they use electricity in bursts during the day, when demand and utility costs are highest, or if they spread them throughout the day. However, if customers use different amounts of electricity, they are charged higher or lower. Residential and small business customers are usually charged a flat rate, though not the same rate per kilowatt-hour. A special type of power meter, meter usage time, is required to charge non-flat rates. Usage time of meter can lower customer's electricity bill, if they use electricity mostly during off-peak hours. Some utilities will allow customers to switch to meter usage time, but they charge for meter and installation.
Real estate
In real estate, "fixed tariff" is an alternative, non-traditional full list of services in which compensation to the listing agent is not based on a percentage of the sale price but instead is the fixed dollar amount normally paid at the close. This figure is generally less than a gross 6% commission, resulting in a decrease in the cost of selling real estate. "Average tariff" is different from "fixed costs" in several ways: i) generally much larger than the "flat fee" rate; ii) is generally a complete list of services compared to a limited list of "fixed costs" services; and iii) are usually paid at closing, as opposed to "fixed costs", which are usually paid when the listing agreement is executed.
Transport
In most parts of the world public transport users, especially commuters, use seasonal, monthly or yearly seasonal tickets that allow seamless travel with fixed costs. In some countries, years are available for the entire national rail network (eg Bahncard100 in Germany for approximately EUR3000 and Oesterreich Card offered by the Austrian Federal Railway). Some, such as the Eurail Pass, are aimed at foreigners, to encourage tourism.
Road users are usually charged a combination of fixed and variable costs, in the form of vehicle duties and fuel duties. Toll taxes in some countries (Switzerland, Austria, Czech Republic, Slovenia) are paid for by buying a weekly, monthly or yearly sticker attached to the windshield.
At some stage, the concept of flat rate is even introduced to passenger air traffic in the form of AAirpass American Airlines.
Shipping package/document
In dealing with packet and document shipments, the "flat rate for international package size # 1 shipping" means that the same shipping cost (eg US $ 15.00) will apply to all packages of this size, regardless of the designated destination ), and regardless of the quantity of the content, ie whether they contain a single sheet of paper or filled to the maximum.
Labor
Fixed rates is a pricing scheme in which a customer pays a fixed price for a service regardless of how long the worker takes time to execute the service. The flat rate manual is based on a time study from the usual time taken for each type of service. Flat rate helps provide a uniform pricing menu for the service job and helps set the value of doing a particular job. Recently some automotive companies began using computer algorithms to calculate working time with a high degree of accuracy.
The benefit to the customer is that if a worker takes longer than this, the cost does not go up. The downfall to customers is that this can lead to more pay in some cases.
The benefit to workers is encouraging the drive to learn how to do the job more efficiently. This system can also burden workers if they do not perform work within the stipulated time as in the case of inexperienced workers or in jobs where there is something that prevents the service from being done which can not be done by the labor manual. account. In automotive stores this is common because bolts are rusted, seized, or stripped or aftermarket installations. In some circumstances, automotive technicians can be paid 0 hours to work for 12 hours a day.
It is difficult to compare prices between paid services and hourly average rates, and this sometimes leads to the refusal of stores at a fixed price above the hourly price.
However, many stores do not use flat rate manuals and instead set their prices by evaluating what they believe the market will bear.
Medical
One of the latest areas where the new flat rate prices are beginning to make a breakthrough is the medical industry. The concept has drawn special attention due to the high cost and increased cost of health care despite legislative efforts to address it, such as the Affordable Care Act (Obamacare). Although there are pilot programs launched by major insurance carriers such as UnitedHealthcare to control costs in the most expensive medical conditions such as cancer, for now the main applications of flat-rate prices have been in medical imaging, such as x-rays, MRI, mammograms, and ultrasound. Regional companies such as Med Health Services Inc. in the Pittsburgh area and the Northwest Radiology Network of Indianapolis has become the first in the country to apply this practice on a trial basis.
See also
- MLS average cost
- Flat rate (financial)
- Fixed taxes
- The Rural Internet
- Too cheap to measure
References
Source of the article : Wikipedia
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