Define the four kinds of uniform delivered pricing methods and give an example of the use of each.

The four kinds of delivered pricing methods are (1) single-zone pricing, (2) multiple-zone pricing, (3) FOB with freight-allowed pricing, and (4) basing-point pricing. In single-zone pricing, all buyers pay the same delivered price for the products, regardless of their distance from the seller. A retail store offering free delivery in a metropolitan area is an example. In multiple-zone pricing, a firm divides its selling territory into geographic areas or zones. The delivered price to all buyers within any one zone is the same, but prices across zones vary depending on the transportation cost to the zone and the level of competition and demand within the zone. The U.S. Postal Service uses multiple-zone pricing for mailing certain packages. FOB with freight-allowed pricing means that the price is quoted by the seller as "FOB plant-freight allowed." The buyer is allowed to deduct freight expenses from the list price of the goods, so the seller agrees to pay, or absorb, the transportation costs. This often happens in shipments from the manufacturer (plant) to the wholesaler or retailer's warehouse. Basing-point pricing involves selecting one or more geographical locations (basing point) from which the list price for products plus freight expenses are charged to the buyer. Basing-point pricing methods have been used in the steel, cement, and lumber industries where freight expenses are a significant part of the total cost to the buyer and products are largely undifferentiated.