What is the purpose of this section?
The Pricing section of your export plan should include subsections addressing the following topics:
Start working on the Pricing section of your export plan
Why is this important?
- What is the price range for your type of product in your target market?
- Based on the unique qualities and characteristics of your product, what pricing strategy will convey the proper image for your product in the target market? Examples include high-quality image, market penetration pricing, and so forth.
- What is the best price to charge based on your pricing strategy and competition?
Now, deduct from your ideal market price:
- Transportation-related costs:
- Freight costs (from your warehouse to the product's final destination).
- Freight forwarding and documentation fees.
- Inspection and certification fees (if any).
- Costs related to special shipping requirements such as temperature recorders or pallets.
- Cargo insurance.
- If you plan to sell your product directly to an end user (for example, store) include any costs imposed by the foreign government:
- Import/export duties.
- Value-added taxes (VAT).
- Customs fees.
- If you plan on selling to an intermediary, include any costs related to:
- Wholesalers.
- Importers.
- Distributors.
Now, decide if the product price, calculated above, is sufficient to cover:
- Expected company profit.
- Export marketing expenses such as:
- translation of marketing materials.
- credit checks.
- market research.
- promotional activities.
- travel.
Continue on to the Market Entry section of your export plan