The essence of Geographical orientation is a pricing
strategy to consider who will pay the logistic service fee
according to where the buyers are. It consists of producing area
prices, destination delivery prices, uniform delivered prices and
district deliered prices. Producing area price are Ex-factory
prices provide by sellers and buyers will pay all of the logistic
fees. The prices developed throgh Producing area price strategy
is a unitary one which are suitable for all the clients in different
regions. Destination delivery prices include logistic expenses
provided by the contracts, commission charges and premiums.
Uniform delivered prices refer to fixed prices are applied to all
the clients, no matter how much are the deliver fees and where
the buyers are, sellers should transfer all the merchandises to
the specified location. Generally, when the radius of delivery
area is acceptable as well as the ratio of delivery expenses and
various cost is low, venders are willing to adopt uniform
delivered prices strategy. Destination delivery prices mean that
the market are dividec into serveral districts by the venders and
the prices are developed based on the distance between every
district and venders.