Editing Geographical pricing (section)

== FOB origin == 
{{main|FOB (shipping)}}
With FOB ([[Free on Board]]) origin (or FOB plant) pricing, the shipping cost from the factory or warehouse is paid by the purchaser. Ownership of the goods is transferred to the buyer as soon as it is placed aboard a [[common carrier]]. Typically the choice of carrier is made by the buyer. FOB pricing is utilized by larger businesses capable of arranging their own logistics and [[marketing intermediary|marketing intermediaries]].{{sfn|Boone|Kurtz|2015|p=634}}

With a variation of the FOB pricing called ''FOB origin-freight allowed'' or ''freight absorbed'', the terms allow buyers to subtract all or part of the cost of transportation from their bills. This amounts to a price [[discounts and allowances|discount]], and is used as a [[market expansion]] tactic by the companies with high [[fixed cost]]s.{{sfn|Boone|Kurtz|2015|p=634}}