Chapter # 6 : Export Pricing
The video will give you a good knowledge of the art to set export prices.
Your export price is based on: what the end-users are willing to pay; what the freight, taxes and duties are: how many intermediaries there are who expect to make money on the product/service before it reaches the end-user.
The shorter distribution, i.e. less number of intermediaries between you and the end-user, the higher export price and a higher profit for you. See samples in our article Selecting the right distribution and sales channels for a foreign market.
Manufacturing cost is only of interest when you calculate your profit. Note, by increasing sales your marginal cost for R&D and manufacturing is reduced. Your export price has nothing to do with your domestic selling price.
There’s an enormous amount of information available. The question is how to find what is appropriate. One way is to use commercial online databases.
Leif Holmvall, President
Export Pro Inc.
In our book “Export & Import – Winning in the Global Marketplace”
ISBN 978-0-9681148-1-0 those topics are covered in depth. You can also buy our book for less than $10 as an e-book visit e.g. https://www.amazon.com/dp/0968114814, where you can read part of the book.
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