Geographical Pricing also called “zone pricing” is common in the gasoline industry. In marketing, it is the practice of modifying a basic list price based on the geographical location of the buyer. It is essentially reflects the cost of shipping to different locations. It is the practice of modifying a basic list price based on the location of the buyer to reflect shipping costs. There are several types of geographic pricing: fOB origin, uniform delivery pricing, zone pricing, basing point pricing and freight-absorption pricing.
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