UK Accounting Glossary
A pricing strategy in which which a company delineates two or more geographic areas (zones).
Zone pricing is a pricing strategy in which which a company delineates two or more geographical zones.
All the customers within a given zone pay the same price for a product, however the more distant the zone from a company’s headquarters or base of operations, the higher the price of the product.
When utilising a zone pricing strategy, a company typically keeps its prices to distributors consistent within a particular zone but will usually raise its prices within zones that are further away from its manufacturing facilities in order to help account for higher transport costs.
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This glossary post was last updated: 4th May 2019.