Flat Pricing

Flat Pricing

Flat Pricing Jonathan Poland

Flat pricing is a pricing strategy in which a fixed price is offered to all customers for a product or service. This approach is popular with consumers and can increase sales for a business. Flat pricing is easy to advertise, administer, and bill, making it a convenient option for both businesses and customers. The following are illustrative examples of flat prices.

Products

A site sets static prices for all customers such as $90 for a particular pair of shoes. The firm knows that the data-driven algorithmic pricing practices of its competition are unpopular. They use themes of fair and predictable pricing in their advertising, promotion and brand identity.

Subscriptions

A subscription service offers a monthly sample box of artisanal chocolate delivered for $10 / month.

Services

A telecom service offers unlimited bandwidth for a fixed rate that’s available to all customers.

Postage

Postage rates in many countries have a flat rate structure whereby it costs the same to send an envelope down the street as across the country. This makes the system far more convenient than a system of calculating point-to-point charges.

Agents

A real estate company in a competitive environment offers a flat rate price such as $3000 for closing a sale. For most customers, this represents a significant discount to the percentage based fees of the competition.

Content Database

IT Architecture Jonathan Poland

IT Architecture

An IT architecture is a framework that describes the components of an information technology (IT) system, how they work together,…

Sales Promotion Jonathan Poland

Sales Promotion

Sales promotion refers to the use of various incentives and discounts to encourage customers to make a purchase. These promotions…

Marketing Channel Jonathan Poland

Marketing Channel

The total combined industries of consumer goods and services.

Customer Preferences Jonathan Poland

Customer Preferences

Customer preferences are the specific desires, likes, dislikes, and motivations that influence a customer’s purchasing decisions. These preferences complement customer…

Product Analysis Jonathan Poland

Product Analysis

Product analysis is the process of evaluating a product for the purpose of product development, review, or purchasing. This evaluation…

Sentiment Analysis Jonathan Poland

Sentiment Analysis

Sentiment analysis is the process of analyzing and extracting subjective information from text data. It is a type of natural…

Quantum Computing Jonathan Poland

Quantum Computing

Quantum computing is a fascinating and rapidly evolving field that seeks to harness the principles of quantum mechanics to perform…

Design Quality Jonathan Poland

Design Quality

Design quality refers to the value that a design holds for customers. It is a critical factor in the success…

Pricing 101 Jonathan Poland

Pricing 101

Pricing refers to the process of determining the value that a business will receive in exchange for its products or…