basing point price system

basing point price system

see GEOGRAPHICAL PRICING.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

basing point price system

a form of pricing products, such as cement, that are bulky and expensive to transport, which involves charging different prices to customers based in different locations. Customers located near to the supply source (or ‘base point’) are charged a lower delivery price compared to customers farther afield.

See PRICE DISCRIMINATION, DELIVERED PRICE.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005