Flat rate pricing is a very simple strategy with a single tier charging a flat rate subscription to unlock all features within a product. Oftentimes this strategy is used to differentiate a product in a saturated market.
For every pricing strategy discussed, the amount the customer pays goes up based on the amount of value they are getting out of the product, except this one. Flat pricing is very appealing to a customer for the apparent reason: it won't get any more expensive if they use it more.
Customers prefer simple pricing, the more options they have, the harder it is for them to make a decision. With flat pricing, it doesn't get any more simple, and a single flat fee subscription goes a long way as a strategy.
Typically when using a flat fee pricing strategy, a business is targetting a single customer persona who they know well enough to understand their perfect price point. When it comes time to try and target other customer personas, it becomes trickier because those personas often either want to spend more or less, for more and less features then your current offering is providing.
This is the greatest issue with flat-rate pricing. If a massive company starts using a product, they do not have to pay more even if they are willing to. This causes major problems for support, infrastructure, and growth.
Companies should consider charging at a flat rate if some of the following applies to them: