Uniform delivered pricing (UDP)

Uniform delivered pricing (UDP),

Definition of Uniform delivered pricing (UDP):

  1. Pricing that includes all transportation costs and where the seller retains the title to the goods until they are delivered to the customer. Two basic kinds of UDP are: (1) Single-zone pricing where all customers, irrespective of their distance from the seller, pay the same delivered price. Also called postage stamp pricing. (2) Multi-zone pricing where a geographic area is divided into zones according to the distance from the sellers dispatch point. Whereas different prices are charged for different zones, prices remain the same within a zone.

Meaning of Uniform delivered pricing (UDP) & Uniform delivered pricing (UDP) Definition