Base Point Pricing
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Base Point Pricing

Base point pricing is the system of firms setting prices of their goods based on a base cost plus transportation costs to a given market.[1] Although some consider this a form of collusion between the selling firms (it lowers the ability of buying firms to gain a competitive advantage by location or private transportation), it is common practice in the steel and automotive industries. It allows firms to collude by simply agreeing on a base price.


  1. Point Pricing (-5 to +5 range)
  2. Rebate Pricing (-5 to +5 range)
  3. Bond Pricing (+95 to +105 range)

A pricing approach that involves designating a particular geographic location as a basing point and then charging customers as a freight cost from that location to the location of the customer. Or a pricing method in which customers are charged freight cost from a base point; the base point may be chosen arbitrarily, but the location of one of the company's manufacturing plant is commonly used.

See also


  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.

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