A flat fee or flat rate refers to a pricing structure that charges a single fixed fee for a service, regardless of usage.

HubSpot contributor Erin Rodrigue has published an in-depth article on flat-rate pricing.

She says, “If you price things correctly, a flat rate will cover the direct and indirect costs with a healthy profit leftover. But calculating an optimal one requires a solid strategy — and a little guesswork. So if you want to determine a fixed rate that will work for you, follow these steps:

  1. Start by estimating the number of hours it will take to complete a project. If you’re unsure, use your work history as a guide —or research what your competitors charge for similar projects.
  2. Multiply the number of hours you’ll work on the project by your hourly rate. The resulting number is your total labor cost.
  3. If applicable, calculate the cost of materials for the project.
  4. Multiply the cost of materials by your markup percentage. The resulting number is your total materials cost.”

What is Flat Rate Pricing? [+5 Examples]

Sharing is caring