Provide 3 examples, preferably in spreadsheet form, of volume discount
plans for service hours.  Example: If I perform 1,000 hours of service
I get paid N.  If I perform 2,000 hours of service I get paid ( N *
.95).   Models with more details/parameters are better than very
simple models.

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Request for Question Clarification by pafalafa-ga on 22 Dec 2005 14:54 PST

Hello there, kengeneca-ga, and thanks for directing this my way.

But to tell the truth, I'm not at all familiar with the concepts you
asked about.  The closest I can come up with are the sorts of user
volume discounts that come with using online services.  For instance,
occasional look-ups on, say, Lexis-Nexis cost a few dollars for each
lookup.  But if you use the service thousands of times a month, the
per-lookup cost becomes much cheaper.

Is that the sort of thing you mean?

I suspect it isn't quite on target, but if not, perhaps you can
provide an alternative example to fill me in.

Thanks,

paf

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Clarification of Question by kengeneca-ga on 23 Dec 2005 05:49 PST

The plans you describe are too simple.  It's difficult to describe...but..
The plan would use 5 variables:
a minimum number of hours
a maximum number of hours
a minimum profit margin
a maximum profit margin
actual hours used

If a person uses 1,000 hours, then I earn get 15% of the revenue
generated by those hours.  If a person uses 20,000 hours, then I get
8% of the revenue generated by those hours.

The "curve" is linear, there is no step function.

This may not be a reasonable question to pose to GA.  If not, please let it expire.

Ken