Flat rate

A flat fee, also referred to as a flat rate or a linear rate refers to a pricing structure that charges a single fixed fee for a service, regardless of usage. Less commonly, the term may refer to a rate that does not vary with usage or time of use. A business can develop a dependable stance in a market, as consumers have a well-rounded price before the service is undertaken. For instance, a technician may charge $150 for his labor. Potential costs can be covered. The service may result in inevitable expenses like the parts needed to fix the issue or the items required to complete the order. No restricted structure is needed, as the pricing system can be adjusted to suit the business using it. Management can thus work out the pricing that best matches the company's objectives, efforts, costs, etc. The fixed pricing restricts the company's capability to meet the needs of individual consumers, and people search for cheaper alternatives. Pricing competition thickens, with other companies in the same industry compete for the lowest pricing, and tough competition occurs. Inflation can cause unprecedented losses, and companies must raise the charge to keep up with costs. There are flat rates in the postal service, regarding the delivery of items. Postage companies use different forms of post, boxes or envelopes, to avoid having to weigh items. The on-hand cost lets consumers identify the cost and removes the hassle of estimate the cost for items. The United States Postal Service offers flat-rate pricing for packages selling different postage options varying in size and shape. That provides consumers with an array of options upfront, creating a sense of ease. When shipped in higher volumes, it saves money but there are issues if both the flat rate and regular delivery systems are used simultaneously. Flat rate also passes into advertising. Purchasing advertisements on websites such as Facebook, Twitter and YouTube is sold a flat rates on the size (with a surcharge for images and posts) and length of the advertisement (video costs extra).