What is the meaning of Setup fee?

  • Sunday, 10th September, 2023
  • 11:31am

Some service providers offer cheap services in the form of monthly payments with low amounts. To cover their costs and make their services profitable, they charge a one-time setup fee at the beginning.

If a customer cancels their services in a short time, the service provider will not feel any loss by calculating the average setup fee received and the monthly payment of this customer. However, if the customer uses the services of this provider for a long time, they will benefit from paying a lower monthly amount than other competitors of this provider in the long run. It is important to note that while the setup fee is not high, customers should be aware of it when calculating their total costs

Thanks for Understanding



« Back