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.