A fixed access fee and a variable usage price — the model cleanly separates revenue from commitment and revenue from consumption.
What it is
With a Two-Part Tariff, customers pay a fixed base fee (access, membership, licence) plus a variable usage-dependent price. The model decouples commitment from consumption and enables differentiated revenue steering.
How it works in practice
- Energy providers: base fee per meter plus consumption price per kWh.
- Mobile: monthly base fee plus data packs or international roaming.
- B2B software: licence fee per user plus charges for transactions or API calls.
What customers gain
- Predictability of base costs.
- Low hurdle for occasional use.
- Differentiated tariffs by intensity of use.
What providers gain
- Stable base revenue independent of usage swings.
- Revenue scales with customer intensity.
- Better steering of infrastructure investments.
Where to be careful
- Entry barrier: high base fees keep price-sensitive segments away.
- Perception trap: customers often fail to add fixed and variable cost correctly.
- Complexity: multiple tariff components require clear communication.
When does the method fit?
A Two-Part Tariff works for business models with high provisioning costs and strongly fluctuating usage. In businesses with even consumption, a flat fee is usually more transparent and easier to communicate.
Andreas Stauber
Founder & Managing Director, Resilient Value GmbH