Decision Point: Geographic Pricing Strategies
Now that you have a better understanding of some of the pricing strategies used for the Carry Tu
product line, let's review other strategies that might not be applicable to designer bags but would
definitely come into play with other products or commodities.
In the production of its bags, Carry Tu purchases handles, straps, fabric, zippers, and other
components. Many of these components are sourced internationally, and each vendor has its own
pricing strategies.
Match each description with the correct geographic pricing strategy and then click Submit.
FOB-origin pricing
Zone pricing
Basing-point pricing
Carry Tu buys pre-sewn plastic compartments for its satchel bags from a supplier in X
Vietnam that has multiple factories. Carry Tu pays freight from Hanoi, regardless of
which in factory the plastic compartments were made.
Carry Tu buys padded straps for its overnight bag from a supplier in South Carolina. If X
the straps are shipped to Carry Tu's North Carolina factory, the supplier charges one
rate; if handles are shipped to Carry Tu's Missouri factory, the supplier charges more for
shipping.
