Glossary entry

English term or phrase:

fixed fee at margins

English answer:

fixed fee at the breakeven point

Added to glossary by Murat Yildirim (X)
Dec 9, 2005 13:03
18 yrs ago
1 viewer *
English term

fixed fee at margins

English Bus/Financial Finance (general)
XXX receives a fixed fee at margins with the hope that the increased economies of scale savings over time will increase profits for XXX and lower the cost to YYY.

I am unsure as to the exact meaning of the above passage. What is the relation between the 'fixed fee' and the 'margins'? Whose margins? What kind of margins?

Responses

+5
9 mins
Selected

fixed fee at the breakeven point

Jakub,
It is basically saying that they are willing to earn a small fixed fee because they hope to get more through economies of scale (by producing and/or selling more, that is).
Peer comment(s):

agree fiorellino32
0 min
agree Peter Shortall
1 hr
agree Alfa Trans (X)
2 hrs
agree Nikos Mastrakoulis
1 day 15 hrs
agree Romanian Translator (X)
2 days 22 hrs
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4 KudoZ points awarded for this answer. Comment: "Thank you very much :)"
2 mins

at margins means with a profit

*

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Note added at 5 mins (2005-12-09 13:08:46 GMT)
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the profit/margins are for xxx

the kind of margins depends on the amount of profit included in the fixed fee
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17 mins

fixed fee with mininal / negligible profit

As Anna Maria implied, margins = profit expressed as a percentage in relation to cost.
In this case, as Murat says, it means 'with nearly zero profit' (hoping, of course, that over time cost will come down and, correspondingly, profit, or 'margins', will go up.

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Note added at 20 mins (2005-12-09 13:23:53 GMT)
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Correction: margins = profit expressed as a percentage in relation to *price* or *fee*. Often also margins = profit expressed as an absolute amount per item sold.

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Note added at 1 day 16 hrs 4 mins (2005-12-11 05:08:23 GMT)
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Just noticed: should read "minimal", not "mininal", of course...
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