Geographic pricing is a pricing strategy that sets a price based on the geographic location of buyers. This approach takes into account the different shipping costs (freight charges) and competitive environments in different regions.
Different types of geographic pricing include FOB (free on board) pricing (the customer bears all costs from the factory), flat-rate pricing (the same price, including shipping, for all customers), or zone pricing (customers within a certain zone pay the same price). The choice of method is a strategic decision that affects customer value and market coverage.
