Basing Point

In the basing point pricing system, a basing point is a specified geographic location from which the exact same delivered price applies to each and every destination. Different companies would establish the prices of their products within a specified market, setting a "base price" plus transportation costs, regardless of the delivery destination.

So like...let's say the basing point is in Kansas City. Okay, then any shipments within Kansas City will simply cost the base price, while shipments to other towns will be the base price plus the designated shipping rate anywhere within the delivery zone, regardless of the distance from Kansas City. A delivery address 100 miles away would be the same price as an address which is 60 miles away.

This allows companies to collude with each other to agree on a base price of an item. But it's not a violation of antitrust laws which outlawed industry price fixing. Basing point systems are pretty passe today, but they were all the rage for the 60 years following the Sherman Antitrust Act of 1890.