The Meaning of PER HEAD

in per •  7 years ago 

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The term "Per Head" was initially a pricing method where bookies would understand easily what their bill would be each week or each month. For the software provider to keep things legal, it was imperative that they be completely seperated from the swings of daily wins or losses. In other words, the service provider needed to be sheilded from what was actually happening. The bookie would pay a fixed price no matter what happened with his wins or losses. This allowed the Software provider to seperate themselves from the volatility of the business, and provide a steady revenue.

Of course this is not the only business to operate in such a manner. One could say that doctors, lawyers, even the garbage collector gets paid regardless of how severe the illness, whether the case wins or loses, or how many bags of trash are collected. It is a fixed pice that protects the provider from the volatility of the customer. But for bookies, the term "Per Head" became the industry standard term that was recognized by all.

Now fast forward to today: Every industry develops and improves over time, and the bookie software industry is no different. What was per head yesterday, is now per week, per month, or even per client. In other words, bookie software providers now offer a host of different pricing models to meet the needs of the customer. The bookies are more savvy, informed, and have a lot more choices. So the provider had to adapt and offer more solutions. Now a bookie can choose to pay per head, or they can pay a weekly or monthly fee no matter how many players.

But the term "Per Head" stuck with the industry because it was already widely understood by all invloved. So just because a service claims to be a pay per head service, that does not mean they will only offer a per head price. They will most likely offer a host of different prices to meet the needs of today's bookies.

For more - http://www.bookiesoft.com/index.php/per-head

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You have a minor misspelling in the following sentence:

For the software provider to keep things legal, it was imperative that they be completely seperated from the swings of daily wins or losses.
It should be separated instead of seperated.