How Are Water Prices Chosen?

water pricing

Have you ever wondered how, exactly, water pricing works? Here in the United States, water is a relatively cheap commodity, especially when you consider how much of a necessity it is in our everyday lives. But how is such a vital resource so cheap, and who decides the pricing of H2O? We discuss below.

Utilities

Water utility pricing varies depending on the pricing structure being used, but the same factors still play into the decision. A city’s water infrastructure and physical proximity to a source will play a big role in the overall price.

One of the bigger payment options includes flat fee rates, which means that the individual would pay the exact same amount of money each month, no matter how much they spend. This gives the comfort of using however much water is needed for daily tasks without having to worry about cost, but it can also lead to a wasteful overuse of resources.

There are a number of more conservative structures that address overuse. For example, the water surcharge strategy charges a higher rate once a household has reached excessive use, while increasing block rates charge a certain price as new levels of use are reached. There are even pricing structures based on time of day and season of the year.

Bottled Water

While an individual bottle of water may seem relatively cheap, it’s much more expensive than the tap water in our homes. But what factors play into this large increase in pricing?

Bottled water takes more time and effort to produce, from the bottling plants to transportation. It also goes through more hands to reach the final consumer, and the price increases with every transaction. Variables such as the type of water, what brand is on the bottle, and where the bottle was purchased all have an effect on how much you’re paying, too.

Water Way Makes Water Easy!

Water is our passion – not only because we enjoy providing high-quality H2O to our consumers, but we make it easier than ever to get the hydration that we all need to stay healthy. We deliver various sizes directly to your home or business, so all you have to do is drink it! Contact us today for more information.

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