What is Basing Point Pricing in Marketing?

Learn Basing Point Pricing definition in marketing with explanation to study “What is Basing Point Pricing”. Study basing point pricing explanation with marketing terms to review marketing course for online MBA programs.

Basing Point Pricing Definition

  • A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Basing Point Pricing Explanation

Basing point pricing method explains the pricing system in which organization charge the product price in two components. Initially, the organization fixes the price of the product, then the organization charges travel or shipment cost occurs while reaching to the targeted location for the customers. This additional cost is usually very high, it depends on the distance covered to reach that location. Originally, basing point is usually the same as the manufacturing point. The cost of the product increased when it moves from one place to another.

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