Chapter 15

Flat Rate

‘All you can eat’ – unlimited consumption at a fixed price

An alarm clock kept on the table, coiled by wire of a telephone receiver. The clock’s only hand shown is also coiled by the wire. A circular callout pointing to the other end of the receiver is marked with the infinity symbol.

The pattern

With this business model, customers purchase a service or a product for a lump sum and then use it as much as they wish. The main advantage for them is unlimited consumption with full control of their costs (WHAT?). It remains financially sound for the business too, if customers who exceed the normal rates of use are balanced out by those who use the service only sparingly (VALUE?). In a few cases, companies have to set upper limits of consumption in order to protect themselves from exorbitant costs, and while this goes against the basic principle ...

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