Sliding scale fees

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Sliding scale fees are variable prices for products, services, or taxes based on a customer's ability to pay. Such fees are thereby reduced for those who have lower incomes, or alternatively, less money to spare after their personal expenses, regardless of income.[1] Sliding scale fees are a form of price discrimination or differential pricing.

A business or organization may have various motivations for pricing a product or service on a sliding scale. These may include the desire to be charitable to those less able to afford the product or service, their ability to get a tax deduction for offering their services as charity, their ability to benefit from the revenue even from a partial payment, their retention of a longtime customer/client, or referrals that such a customer/client may provide.

For example, healthcare providers sometime offer a sliding scale of fees to patients.[2] Some child-adoption agencies collect legal fees (normally very expensive) on a sliding scale, so that couples across a wider range of incomes are able to adopt children.[3] Sliding-scale fees are also often charged by lawyers, places of worship, and for tuition at educational institutions.[4]

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References[edit]

  1. ^ Taylor, C. "The Economics of Sliding Scale Pricing". smallbusiness.chron.com. Small Business - Chron.com. Retrieved 2 July 2021.
  2. ^ Banton, Caroline (21 August 2019). "Reading Into Sliding Scale Fees". Investopedia. Retrieved 2 July 2021.
  3. ^ Pueblo.gsa.govArchived 2008-12-08 at the Wayback Machine
  4. ^ "Tickets without fees". Thursday, 24 August 2017