Basing Point Pricing

Posted in Marketing and Strategy Terms, Total Reads: 2046

Definition: Basing Point Pricing

In this system, the customer must pay the base price of the product and also the freight charges for delivering the product.

These freight charges or transportation costs are determined from a “base point” which may or may not be the manufacturing location. Depending on the distance of the buyer from the base point, the transportation costs have to be paid by the buyer of the product.

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