Two-part Tariff - Examples of Two-part Tariffs

Examples of Two-part Tariffs

The following items could be identified as two part tariffs; but it is possible some of them could be debated on the basis of the presence of fixed costs such as insurance which the firm cannot recoup in any other way.

  • "membership discount retailers" such as shopping clubs that charge an annual fee for admission to the point of sale and also charge for your purchases
  • amusement parks where there are admission fees and also per-ride fees
  • cover charge for bars combined with per drink fees
  • credit cards which charge an annual fee plus a per-transaction fee
  • loyalty cards or clubs
  • landline telephones where there is a fee to use the service ('line rental') and also a fee per call. The line rental covers the cost of providing the service, the per minute charge covers the cost of placing the call on the network.
  • personal seat licenses in professional sports, in which fans of a team pay an up-front lump sum fee for the right to purchase tickets at face value

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