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                                                     Variable rate vs fixed rate

 

Just a thought 

 

This variable rate concept in everything is just everywhere, I think few decades ago, as business was slow, I think hotels were used to be fixed rate, customer comes books room and stays in fixed rate, Now a days in this online world as demand increases, hotels extract more and more money from clients specially during holiday season. and everyday price keeps changing to increasing according to demand. Same with Airline industry. Luckily it is not the case with most restaurants, still some restaurants do come up with holiday menu only- with increase combined process with 2-3 course items.  some keep a la carte menu,some don't or not willing to give.

like wise due to huge size of home loan, and interest rate , banks have variable and fixed interest rate , its depends on customers knowledge as per the interest rate cycle going up or down to take the variable rate or fixed rate, again it depends on country to country, In U.S, one can select and stay with low fixed interest rate for the whole term, in Canada, whatever interest rate you select, you have to change it in 5 years term.

In so many industries now have variable and fixed things, are all these things for more confusion to clients 

Why Apple wins, due to it fixed phone price at launch, and keeps going down with every new yearly phone launches, specially if taken with a plan from the sim service provider.

It seems all the variable plans are plan to let the largest player/winner win all, as small and marginal seller cannot match it for sure.

Buyer have to be conscious.



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