Sliding scale fees are variable cost

Cost

In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...

s for products, services, or taxes based on one's ability to pay. Such fees are thereby reduced for those who have lower incomes or less money to spare after their personal expenses, regardless of income.

A business or organization may have various motivations for offering a product at 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

Income tax systems generally allow a tax deduction, i.e., a reduction of the income subject to tax, for various items, especially expenses incurred to produce income. Often these deductions are subject to limitations or conditions...

 for offering their services as charity

Charity (practice)

The practice of charity means the voluntary giving of help to those in need who are not related to the giver.- Etymology :The word "charity" entered the English language through the Old French word "charité" which was derived from the Latin "caritas".Originally in Latin the word caritas meant...

, their ability to benefit from the revenue

Revenue

In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....

 even from a partial payment, their retention of a longtime customer/client, or referrals that such a customer/client may provide.

Some businesses or organizations may have their profits that would have been obtained from a full-price sale subsidized

Subsidy

A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...

 by some other means. These may include charging a higher cost to a wealthier client, obtaining grants

Grant (money)

Grants are funds disbursed by one party , often a Government Department, Corporation, Foundation or Trust, to a recipient, often a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of "Grant Writing" often referred to as either a proposal...

 from government agencies or non-profit organization

Non-profit organization

Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...

s, or obtaining a tax deduction

Tax deduction

Income tax systems generally allow a tax deduction, i.e., a reduction of the income subject to tax, for various items, especially expenses incurred to produce income. Often these deductions are subject to limitations or conditions...

.

For example, medical fees may depend on a patient's income. Andrew Carnegie

Andrew Carnegie

Andrew Carnegie was a Scottish-American industrialist, businessman, and entrepreneur who led the enormous expansion of the American steel industry in the late 19th century...

 imposed this on his workers during the Homestead Strike

Homestead Strike

The Homestead Strike was an industrial lockout and strike which began on June 30, 1892, culminating in a battle between strikers and private security agents on July 6, 1892. It was one of the most serious disputes in U.S. labor history...

. Some child adoption agencies collect legal fees (normally very expensive) on a sliding scale so couples across a wider range of incomes are able to adopt children. Sliding scale fees are also often charged by lawyer

Lawyer

A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person who is practicing law." Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain the stability of political...

s, places of worship

Worship

Worship is an act of religious devotion usually directed towards a deity. The word is derived from the Old English worthscipe, meaning worthiness or worth-ship — to give, at its simplest, worth to something, for example, Christian worship.Evelyn Underhill defines worship thus: "The absolute...

, and for tuition

Tuition

Tuition payments, known primarily as tuition in American English and as tuition fees in British English, Canadian English, Australian English, New Zealand English and Indian English, refers to a fee charged for educational instruction during higher education.Tuition payments are charged by...

at educational institutions.