Help ensuring my prices are competitive?
I need help to ensure that the prices are in a format which the potential customer finds it easy to understand:
– do i include duty , where do find this for particular country and products
– do prices need to be in local currency or both
– retail price potential mark up for customer
– carriage charges
– other terms FOB etc? Do these apply to air freight?
– indicate that i am open to negotiate
not quite certain what line of business you are in, or where you are exporting to, or what types of products .The answer may vary.
If you are already selling, then you may just give an ex-works price and the customer will know how that compares against other suppliers.
If you are looking to set the retail price in each country then you could be giving yourself a lot of work when the local trading factors are not being controlled by you. If all the local manufacturers are selling at the equivalent of $9.99 and you do your calculations to compete, it could then force you to sell ex-works prices lower than you want !
Then what is your product /price positioning compared to the other manufacturers ?
On my last trip to Colombia I went to visit 3 different distributors and I established the freight and duty co-efficient for them importing. Because of the sizes of their orders freight and duty was 25%, 40% and 55% respectively.
I normally make a spreadsheet using http://madb.europa.eu/madb/datasetPreviewFormATpubli.htm?datacat_id=AT&from=publi
I translate it into local currency, then find out from distributor what other local charges. If you are in Bogota the costs from the ports (with insurance because of high risk of theft on the roads) if you are in Jeddah the cost is lower as the port is closer.
Once you have duty, paid, landed cost you will still need to know what is the distributor margin expectation (in Australia its a long internal delivery distance between retail shops in Sydney compared to Perth, and freight companies are more expensive with wages than say Holland). What then is the retailer expectation ? They vary from country to trade sector.
Once you have your spreadsheet made then you will vary it for each country you visit.
I am happy to help out on this with – no initial commitment, as I have been doing export marketing for over 30 years . Gilio