Firms which utilise uniform delivered pricing may lose some business to competitors that employ FOB- origin pricing and are located nearer to their customers.

Question

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Uniform delivered pricing means that the cost of shipping or delivering the product is already included in the price. This can put firms at a disadvantage compared to competitors who use FOB- origin pricing as they may be able to offer lower prices due to being closer to the customers and having lower shipping costs. This could result in a loss of business for firms using uniform delivered pricing.

Firms Which Utilise Uniform Delivered Pricing May Lose Some Business