L you used for the export prices are the product of the interaction of internal, external.
1. Strategy
past, is vital to make a thorough examination of the company's current status, potential, ambition, ability and study the feasibility of the project. 3 aspects are considered basic strategy. business, logistics, market. The company must be tested on fiscal commitments, overall competitiveness, administration and management, planning. The proper transport, proper insurance, customs clearance successful and above all, diversification and constant updating in terms of prices are the result of an efficient logistics plan. Product placement in the foreign market is the natural consequence of identifying destination, watching the competitors, potential customers, in general, a good market research.
Following the orthodox theory, there are four "P" to ensure success in this task (Price, Promotion, Product and place or distribution -square-). The distribution is accomplished using appropriate channels and market research, the product is necessarily subject to changes in standards, labels, packaging ...
Competitiveness is ensured if it has one of the following characteristics: cost leadership, differentiation or market segmentation.
has high production costs are reduced and mass marking covers, the value comes from the widespread consumption of the product.
a selective market is a distinct market, allows for large profit margins and low sales, for it must be against a clearly differentiated product, something that does not exist, that specific feature or impossible to copy or However, much prestige it is then necessary strengths in the competitive advantages of design, image and / or quality, not looking to compete with low price.
The segmentation identified target markets with potential. A market segment consists of people who have some distinct characteristics in common.
short:
Consumer needs
+ business strength
weak competitor +
= opportunity
A good export marketing strategy allows the company and its products remain and consolidate before in domestic markets.
2. Basics for quote
The cost is the sum of the expenditures made to obtain a good or service. Price is the exchange value of the product or service that is established between the buyer and seller, price = cost + profit.
Quote relates to the commitment that involves not only the price, but general conditions, rights and obligations of the parties to the delivery of goods.
two techniques to determine export prices costing and pricing . The first is obtained by adding the costs of production and transportation costs. The pricing is estimated by subtracting the international price the cost of transport.
If the price of goods is subtracted dsitribución channel margins, the charges, freight and insurance, customs costs and cost of packaging, among others, discuss pricing for pricing to Unlike add to earnings the contribution to fixed costs + variable costs - price of silver, which is costing .
The price is the determination of price and trading limits in accordance with the terms of international trade and sale and discount policies (promotion, economies of scale).
The export price thus includes customs clearance, transportation, freight, duties and taxes, distribution channels, packaging and packing, etc..
3. International trade terms (INCOTERMS )
define responsibilities between buyer and seller, transfer risks are not mandatory to use but its adoption is universal. Created in 1936 by international chambers of commerce, the INCOTERMS regulate rights and obligations in a purchase agreement, must be specified in the quotation and invoice. Basically there are 4 groups:
- E (exit): EXW,
- F (free): FCA, FAS, FOB,
- C (cost): CFR, CIF, CPT;
- D ( Delivered ): DAF, DES, DDU, DEQ, DDP.
simplify the collection costs of goods, payment of inspection, file export and import, contract of carriage and insurance of goods to their final destination.
It created something similar, called RAFTD, but only applies to their territory and have no legal validity.
4. Domestic costs and export costs by the company
Costs are divided into fixed and variable. The former are autonomous, depend on the production variables.
There are formulas that specify the level of production and breakeven others:
Total cost = Fixed cost + Variable cost
point balance (volume) = Fixed cost / unit price - unit variable cost
point of equilibrium (price ) = Fixed cost + (variable cost * amount) / amount
Contribution margin = price - variable cost
5. Export expenses, external
carriers, brokers, insurers, procedures, documents and certificates, visa consular, letters of credit applications, quotes.
6. Negotiating
To negotiate you need to know to perfection the advantages and disadvantages of the product and even better, competition, be flexible and not make concessions without asking anything in return.
The importer may complain about high prices and request a reduction, the exporter requests and justifications for such a statement emphasizes the benefits.
The importer says that there are better deals with others, the exporter requests details on these offers, inquires on its seriousness.
Calls counteroffers and discounts, the exporter must not improve the offer without asking anything in return, must hold the buyer's interest to make concrete suggestions.
Calls a specific price, the exporter recalculated and does not accept immediately, there are risks
claims that the product is good for a high price, he accepts, gives details of costs discussed further enhances benefits.
Finally, it is essential to know the price range of variation for a good bargain
Broadly speaking, the price is the relevant factor to compete, is best calculated by the system pricing should be calculated and not estimated. Beware of negotiation.
Source: Formation of export price
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