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Sliding scale fees are variable
price A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the ...
s 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. Sliding scale fees are a form of
price discrimination Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. Price discrimination is distinguished from product differe ...
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 Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. T ...
for offering their services as
charity Charity may refer to: Giving * Charitable organization or charity, a non-profit organization whose primary objectives are philanthropy and social well-being of persons * Charity (practice), the practice of being benevolent, giving and sharing * C ...
, their ability to benefit from the
revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...
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. 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. Sliding-scale fees are also often charged by lawyers, places of
worship Worship is an act of religious devotion usually directed towards a deity. It may involve one or more of activities such as veneration, adoration, praise, and praying. For many, worship is not about an emotion, it is more about a recogniti ...
, and for
tuition Tuition payments, usually known as tuition in American English and as tuition fees in Commonwealth English, are fees charged by education institutions for instruction or other services. Besides public spending (by governments and other public bo ...
at educational institutions. Thursday, 24 August 2017


See also

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Pay what you want Pay what you want (or PWYW, also referred to as value-for-value model) is a pricing strategy where buyers pay their desired amount for a given commodity. This amount can sometimes include zero. A minimum (floor) price may be set, and/or a suggest ...
*
Price discrimination Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. Price discrimination is distinguished from product differe ...
*
Sliding wage scale The sliding wage scale consists in increasing the wages as the prices rise in order to maintain the purchasing power of the workers even if there is inflation. Application In France The sliding wage scale was introduced in France in July 1952 under ...
* Ability to pay


References

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