Flat Rate

Posted in Marketing and Strategy Terms, Total Reads: 1189
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Definition: Flat Rate

A flat rate can be described as a pricing structure which charges a single fixed fee for any product or service, regardless of its usage. It can also be explained as a rate which does not changes with usage or the time of use. Flat rate is used in different connotations in different places. Let us look at some of these –


Sale – We often see retailors putting up an year-end sale or stock clearance sale where they offer a Fixed Rate of product and do not entertain any negotiations. At times we also see offers like everything for INR 99 or the 1$ /2$ stores where all the products have a fixed flat rate.


Advertisement – The display advertising services follow several pricing models like –


Traditional CPM (Cost Per Mille, also called Cost Per Thousand ad impressions), CPC (cost per click) , Flat Rate and a few more. CPC and CPM are variable with respect to the number of impressions and click respectively whereas the Flat Rate pricing model requires the advertiser to pay a fixed fee as per the agreement, generally for a pre-defined period of time, independent of the performance factors like number of clicks or impressions.


Flat interest rate – Flat Interest Rate Loans and Mortgages calculate interest on the basis of sum of money which the borrower is provided at the beginning of a loan.

 

Hence, this concludes the definition of Flat Rate along with its overview.

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