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Home→The Westburn Dictionary of Marketing→B→base-point pricing

base-point pricing

Definition:
A form of pricing in which all competitors are required to quote their price for a common basing point. The benefit to the buyer is that it enables him to distinguish between the real price of the goods on offer from different suppliers, including any transportation costs to the basing point. Thus the delivered price is the basing point price plus the delivery costs to the buyer's location which will be constant for all sellers. In regulated MARKETS, the base- point price may be fixed, which offers some protection for local suppliers as those distance from the base-point will have to absorb the extra delivery charges.

Cross-References:
[market]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Michael J. Baker], [1998].