Basic fee (business administration)

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The basic fee (including basic price , basic fee , etc.) is a fee that is calculated regardless of consumption for the provision of potential use (e.g. for telephone connections, mobile phone contracts, water supply, waste disposal). In contrast to this is the usage-based fee . Both forms can occur individually or in combination as a price model. As an instrument of price policy , these models serve to differentiate prices .

Package offers such as minute packages in mobile communications or power packages have a similar effect to the basic fee . Here, a basic consumption is covered with the basic fee.

Basic fee and fixed costs

The basic fee can be justified as payment for the company's fixed costs , the usage-based fees as payment for the variable costs . Basic charges are often used by utility companies that have a high proportion of fixed costs due to their infrastructure .

Base fees as an option

Basic charges can also be interpreted as an option . With the payment of the basic fee, the buyer acquires the right to cheaper delivery. An example of this are price models with discount cards such as the Bahncard . The fixed purchase price reduces the usage-based fees. The same applies to sports clubs, where members can use the sports facilities more cheaply.

total cost

Since the company has to cover its total costs, the following generally applies: the higher the basic fee, the lower the usage-based fees and vice versa. As an extreme case, one can look at a prepaid tariff, which has a basic fee of virtually zero euros, but significantly higher call charges.

From the customer's point of view, the total costs are made up of both parts. The choice of the cheapest tariff therefore depends on the individual consumption quantities. In the case of low consumption, a tariff with low basic charges and high usage-dependent charges is cheaper; in the case of high consumption, the reverse is true.

example

As an example, one can assume that a consumer pays a basic fee of 6.99 euros per month with a mobile phone contract. These 6.99 euros must be paid in any case, regardless of whether the phone is active (= outgoing calls) or passive (= incoming calls) or not. The call charges incurred for chargeable calls made will be charged additionally.

See also

literature