What are the advantages of fixed vs variable fees?
An example of an AI chatbot conversation about the benefits of fixed and variable fees.
What are the advantages of fixed vs variable fees?
Fixed fees provide predictability in budgeting, while variable fees can offer flexibility based on usage.
Can you give me examples of when to use each type?
Sure! Use fixed fees for long-term contracts and variable fees for services that fluctuate in demand.
What are the risks associated with each type?
Fixed fees can lead to overpayment if usage is low, while variable fees can result in unexpected costs.
Which option is better for small businesses?
It depends on the business model. Fixed fees are better for predictable expenses, while variable fees suit fluctuating needs.
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