Basing Point Pricing System

  

See basing point.

A system where the buyer will pay a base price, with a set shipping cost added to the total price, depending on how far they are from the base point, or location from which all shipping prices are set.

Transportation charges are added to this basing point (typically the location of product manufacture). More simply, the basing point pricing system will specify transportation costs are added to the basing point location, irrespective of the location from which the product or item is shipped.

Related or Semi-related Video

Finance: What is the Arms Short Term Tra...13 Views

00:00

finance a la shmoop what is the Arms Short Term Trading Index not to be

00:08

confused with the short arms term trading index a run by this guy all [Man with dinosaur for a head sitting at a desk]

00:13

right Richard Arms invented it in the 70s and then a journalist cleverly

00:18

renamed it Trin.... short for trading index very clever

00:24

yeah well Trin as in Rin Tin is just an index for the advanced decline ratio in

00:31

the stock market and if you haven't seen our video on it oh well you should we've

00:35

had George Clooney of fortune so directed the computation of the Trin [George Clooney directing a show]

00:39

looks like this Trin equals advanced issues divided by declining issues all

00:44

over advanced volume divided by declining volume....

00:49

So note that this equation maps volume as an element of the computation so it's

00:54

meaningfully more useful than just the vanilla advanced decline ratio and hey [Man discussing equation]

00:59

just keeping it real their advanced decline ratio we love you but you're [Advanced decline ratio laying on sofa eating doughnuts]

01:03

just not as good all right well so if we compute things we get a value of 1 and

01:08

well that's good or rather a bullish sign that the market "wants to go

01:13

up" above one is bearish and at premiums of 30 40 50 percent ie [Bear walking by a river]

01:18

calculations of 0.5 very bullish to 1.5 very bearish well those are signs that

01:26

have been validated by actual market performance over time well why would we

01:31

care about this calculation in the first place, well if we get the answer right as [Man staring at a crystal ball]

01:36

to where the markets going well you know we can make a fortune

01:39

yeah ask Warren Buffett... [Warren eating dinner]

Up Next

Finance: What is the Historical Trading Range?
18 Views

What is the Historical Trading Range? The historical trading range is just the collection of prices a security has been trading at since its IPO in...

Finance: What is program trading?
14 Views

What is program trading? Program trading refers to the use of computer algorithms to place and execute large volume, multiple buy and sell orders o...

Finance: What is Trading Volume?
29 Views

Trading volume is the number of shares trading back and forth at a given time.

Find other enlightening terms in Shmoop Finance Genius Bar(f)