Pricing by a flat rate may increase sales

From an article in Smart Money "...AOL switched from pay-per-hour Internet service to pay-per-month. When they did that, they got a flood of subscribers. They were caught totally by surprise by the overwhelming consumer demand. Why do people love to prepay for things or pay a flat rate for things?"

According to the article "it mutes the pang of pain." Contrast that with "watching the taxi meter; you know how much every inch of the way is costing you." Think how more relaxed you are when you pay the cab driver a flat rate to or from the airport.

So when feasible, consider pricing items or services by a flat rate to improve sales.