Basing Point Pricing System - Explained
What is a Basing Point Pricing System?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Basing Point Pricing System?
Basing point pricing, or base point pricing, refers to a pricing system whereby a company ensures its prices are determined by two components - a base price for the product and freight cost from product shipping.
Usually, the basing point and the manufacturing point are at the same location, and the distance of the customer or delivery location from that point determines the charge for shipping.