# Factory Gate Pricing

*Last updated: 2026-06-24*

> Factory Gate Pricing (FGP) comes into play when a buyer takes full control of transport from the supplier's factory gate, rather than paying a delivered price that already bundles in the seller's freight costs.

Factory Gate Pricing (FGP) comes into play when a buyer takes full control of transport from the supplier's factory gate, rather than paying a delivered price that already bundles in the seller's freight costs. The seller quotes only for production, packaging, and making goods available at the gate; haulage, insurance, and handling from that point on are organised and funded entirely by the buyer. Large retailers and manufacturers use FGP to consolidate inbound shipments, reduce empty running, and negotiate carrier rates on their own terms. While conceptually close to the Incoterm EXW (Ex Works), FGP functions as a broader supply chain strategy aimed at optimising total inbound transport spend — not merely a contractual delivery condition.

**Source:** [https://www.investopedia.com/terms/f/factory-gate-pricing.asp](https://www.investopedia.com/terms/f/factory-gate-pricing.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Factory Gate Pricing |
| Language | EN |
| Word count | 116 |
| Last updated | 2026-06-24 |
| Source | https://www.investopedia.com/terms/f/factory-gate-pricing.asp |

---

*Logistics Glossary — Freight Academy: [https://www.freight-academy.com/en/glossary/factory-gate-pricing](https://www.freight-academy.com/en/glossary/factory-gate-pricing)*

*Markdown mirror: [https://www.freight-academy.com/api/md/glossary/en/factory-gate-pricing](https://www.freight-academy.com/api/md/glossary/en/factory-gate-pricing)*

*JSON summary: [https://www.freight-academy.com/api/v1/glossary/factory-gate-pricing/llm-summary?lang=en](https://www.freight-academy.com/api/v1/glossary/factory-gate-pricing/llm-summary?lang=en)*