delivered pricing

delivered pricing

the charging of a PRICE for a product that includes the cost of transporting the product from the manufacturer to the customer. The delivered prices quoted by a manufacturer might accurately reflect the actual costs of transportation to different areas, or alternatively, discriminatory prices might be used to cross-subsidize areas in order to maximize sales across the country. See BASING POINT PRICE SYSTEM.
References in periodicals archive ?
While materials based on delivered pricing will vary, on average material increases FOB Leland, North Carolina will be: water-based coatings will increase by 5%-8%; energy curable materials will increase by 2%-5%; and cold adhesives will increase by 3%-6%.
Moore & Associates' database represents a solid source of actual arrogate market prices including reporting delivered pricing (in addition to FOB), weight averaging price by amount of usage, and producing an aggregate market price (including spot as well as contract tonnage).
3) This view is articulated by Stigler |1949~ who combined two important branches of the literature to formulate a theory of how basing-point pricing and, more generally, any delivered pricing system can solve the problems of cartel instability confronting firms that are geographically differentiated and face stochastic demand.
With a delivered pricing system~, there is a single price at each point in the market (if transportation charges are agreed upon), so price rivalry is eliminated.
pricing schedule so that all transport costs are passed on to consumers), uniform delivered pricing (each firm contracts to charge all consumers served the same price, irrespective of their locations) and spatial price discrimination (firms set location-specific delivered prices to consumers).
For uniform delivered pricing, equilibrium will not usually exist at all [7].
The federal judiciary's present, cautious approach to delivered pricing is appropriate.
Delivered pricing litigation seems to be a pure statutory phenomena; our investigation has unearthed no cases under the common law of restraint of trade.