Geographical pricing, in marketing, is the practice of modifying a basic list price based on the geographical location of the buyer. It is intended to reflect the costs of shipping to different locations.

There are several types of geographic pricing:

  • FOB origin (Free on Board origin) - The shipping cost from the factory or warehouse is paid by the purchaser. Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin. It can be either the buyer or seller that arranges for the transportation.
  • Uniform delivery pricing - (also called postage stamp pricing) - The same price is charged to all.
  • Zone pricing - Prices increase as shipping distances increase. This is sometimes done by drawing concentric circles on a map with the plant or warehouse at the center and each circle defining the boundary of a price zone. Instead of using circles, irregularly shaped price boundaries can be drawn that reflect geography, population density, transportation infrastructure, and shipping cost. (The term "zone pricing" can also refer to the practice of setting prices that reflect local competitive conditions, i.e., the market forces of supply and demand, rather than actual cost of transportation.)
Zone pricing, as practiced in the gasoline industry in the United States, is the pricing of gasoline based on a complex and secret weighting of factors, such as the number of competing stations, number of vehicles, average traffic flow, population density, and geographic characteristics. This can result in two branded gas stations only a few miles apart selling gasoline at a price differential of as much as $0.50 per gallon.
Many businesspeople and economists state that gasoline zone pricing merely reflects the costs of doing business in a complex and volatile marketplace. Critics contend that industry monopoly and the ability to control not only industry-owned "corporate" stations, but locally owned or franchise stations, make zone pricing into an excuse to raise gasoline prices virtually at will. Oil industry representatives contend that while they set wholesale and dealer tank wagon prices, individual dealers are free to see whatever prices they wish and that this practice in itself causes widespread price variations outside industry control.
  • Basing point pricing - Certain cities are designated as basing points. All goods shipped from a given basis point are charged the same amount.
  • Freight-absorption pricing - The seller absorbs all or part of the cost of transportation. This amounts to a price discount, and is used as a promotional tactic.

From Wikipedia under the GNU Free Documentation License
Sat Feb 6 03:10:44 2010

What would be the best price for transportation from the Cancun Airport to the Hotel Zone. ?
Q. I am traveling to Cancun and need round trip transfers to the hotel from the airport. How much does it cost for a taxi, bus or should I contact travel agent and book through them?
Asked by Sheltiemom - Sat Nov 1 16:42:38 2008 - - 3 Answers - 0 Comments

A. If you booked with a travel agent through a travel company (such as Apple or Funjet) you should have transportation to your hotel. That is the easiest and fastest way. If not there are other options. There are shuttle services that run about $15. Don't take the taxi service. You will pay a small fortune...they are very expensive. I'll give you a link to check out the different means of transportation and see what best suits your needs. Good luck and enjoy your time!!!
Answered by King of Cancun - Sat Nov 1 19:09:22 2008

how much is 1 day mobilib zones 1-5 in paris,what is ticket (metro)price for zone 4-5 single journ?
Q. how much is 1 day mobilib zones 1-5 in paris,what is ticket (metro)price for zone 4-5 single journ?
Asked by Muzammal - Sun Jul 12 10:55:11 2009 - - 1 Answers - 0 Comments
What is the price for a NJ Transit 2 zone bus pass? Are there student discounts? Where does one purchase?
Q. What is the price for a NJ Transit 2 zone bus pass? Are there student discounts? Where does one purchase?
Asked by marie - Wed Jan 30 15:19:11 2008 - - 1 Answers - 0 Comments

A. Depends on how long you want to use it, check out the local subyway station or main railway station to get the ticket, one ride ticket about 3-4 us dollar, one day ticket is about 7 us dollar, 7 day ticket about 24 us dollar, yes they have student discount but you need to show your student id but only one monthly tickets...
Answered by ChrisPalmer - Wed Jan 30 15:38:43 2008

From Yahoo Answer Search: "Zone pricing"
Sun Jul 19 05:35:12 2009

'Vodafone UK simplifies business international call rates' - Trading Markets (press release)
news.google.com
'Vodafone UK simplifies business international call rates'

Trading Markets (press release)

... Chart | News | PowerRating -- From 14 January 2010 Vodafone UK is simplifying country call zones and standardising zone pricing for business customers. ...
Express lanes - Salt Lake Tribune
news.google.com
Express lanes

Salt Lake Tribune

Charging is a sensible way to allocate that resource, and pricing based on demand encourages drivers to avoid travel during rush hours. ...
Metro Revving Up to Debut new Silver Line Next Week - LAist (blog)
news.google.com
Metro Revving Up to Debut new Silver Line Next Week

LAist (blog)

That pricing is somewhat based (or inspired) on zone charges, something many transit riders are unfamiliar with. Day passes will be honored at full fare, ...



and more »

From Google News Search: "Zone pricing"
Mon Dec 28 01:41:08 2009

pricing midam texas jpg
haulbikes.com
pricing midam texas jpg
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[source page]

Click here for At A Glance Zone Pricing for MidAmerica Auction Texas

large Congestion Pricing jpg
blog.oregonlive.com
large Congestion Pricing jpg
301px x 453px | 74.60kB

[source page]

Streetsblog Aaron NaparstekA vehicle enters the congestion charging zone in London Gov Ted Kulongoski was at an Oregon Environmental Council forum on Friday talking about green

zone jpg
silverinstitute.org
zone jpg
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[source page]



From Yahoo Image Search: "Zone pricing"
Tue Oct 27 18:53:53 2009

Forget street pricing : How much is too much to pay for airport food?
theairlinezone.com
Forget street pricing : How much is too much to pay for airport food?

Today in the Sky - USATODAY.com

Fri, 29 Jan 2010 14:39:00 GM

You wouldn't think that retailers at an airport with slot machines would be able to find extra ways to shake down passengers for cash. But, on ...

What will fibre and ultra-fast broadband mean for you?
geekzone.co.nz
What will fibre and ultra-fast broadband mean for you?

unknown

Mon, 01 Feb 2010 11:50:00 GM

As for . pricing. someone asked, this is an example of what is being offered to the current FTTH subdivisions and some other general info around FTTH · pricing. .shtml ...

Southwest to start Wi-Fi installation in Q2 2010
theairlinezone.com
Southwest to start Wi-Fi installation in Q2 2010

The Dallas Morning News - Airline Biz Blog

Fri, 29 Jan 2010 17:44:08 GM

"We're still testing a variety of . price. points on the four aircraft that currently have wi-fi. We'll have a decision on . price. in the second quarter of 2010--rest assured that, just like our fares, it will be a great value. ...

From Google Blog Search: "Zone pricing"
Wed Feb 3 17:46:14 2010