Pricing
Costs
of exporting can of course make products far more expensive
than when sold in domestic markets. Pricing must therefore
be carefully monitored and controlled and take into account
costs of freight, shipping insurance, overseas agent's commissions,
and other incidental expenditure. Product insurance is essential
and can be arranged through insurance brokers.As a rough illustration
of what factors make for accurate pricing controls, the following
must be taken into account:
- If
you are not the producer of the goods to be exported, the
amount of any discounts for cash or
quantity that the supplier will allow you, might make a
significant difference to prices.
- Costs
of packing.
- Costs
of freight and transportation.
- Bank
processing charges. The bank through which you receive payment
will charge between 1/8 per cent and 1/4 per cent of total
invoice value.
- Currency
exchange charges, where appropriate.
- Insurance
costs.
- Agent's
commission, where appropriate.
- Your
profit.
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