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.

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