Figure 4From “A flat rate buys your customer’s worst month.”
Two ratios, read off your own billing data
One row per key account or segment, from data you already hold. The first ratio is the buyer’s property; the second is the seller’s test of whether the theorem’s world is still yours.
Figure 4Two ratios, read off your own billing data
Source: Author's own worksheet.

From the essay
Pricing & revenue architecture
A flat rate buys your customer’s worst month.
Flat pricing for software rested on two conditions, and inference cost broke one. The buyers who most want a flat rate are the ones with the biggest tail.
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Related exhibits

Figure 1Figure
The preference at equal money, and what a premium does to it
A flat rate buys your customer’s worst month.

Figure 2Figure
Same average, different tail
A flat rate buys your customer’s worst month.

Figure 3Figure
The two plan-choice errors are not the same size
A flat rate buys your customer’s worst month.
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