uniform delivered pricing (UDP)

Definition

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 seller's dispatch point. Whereas different prices are charged for different zones, prices remain the same within a zone.