What are the costs involved in exporting mobile phone accessory goods to Nigeria.
I am exploring the possibilities of exporting a range of products to compliment the mobile phone, tablet industry which continues to grow.
I am looking for a layman’s explanation of the export process and the logic that goes into determine the price to pitch at potential wholesale purchasers.
I appreciate that
(a) for wholesalers it will be necessary to have a pricing module based on a sliding scale with quantity purchased being the critical factor.
(b) wholesale price needs to be priced so as to ensure
– I as agent make a margin
– the wholesaler makes margin when selling to retail buyers
– the retailers make a margin when selling to the general public consumers
I have a retail price in mind ; is there a typical formula which I can refer in order to work backwards to determine indicative prices at each stage of the product life cycle. Appreciate it may change but at least will provide me with a benchmark to work with.
Your thoughts will be much appreciated.
I have just presented the Open to Export Bootcamp YouTube webinar concerning pricing for export – you might find it helpful when thinking about pricing. It is on the Open to Export web site too.
You also need to establish the tariff code for the products you intend to export – see https://www.gov.uk/trade-tariff
You can then see the import requirements, import duty and taxes applicable on this web site http://madb.europa.eu/madb/datasetPreviewFormATpubli.htm?datacat_id=AT&from=publi
The origin of the products may also make a difference to the import duty to be paid.
You also need to decide your terms of delivery (not sale) so that you build up the correct price for your product – INCOterms are usually used for this. See http://en.wikipedia.org/wiki/Incoterms I would strongly recommend you do not use Ex Wks or DDP.
If you would like further information please contact me directly or via open to export. yuou may also find my website of use.
There are several aspects to your enquiry and we would need to break them down somewhat in order to do justice to it. Also the mode in which you wish to trade will also be hugely influence our response. For instance, it would be helpful to know if you have sourced a market for your goods. Do you require any assistance in sourcing wholesalers etc? Will you wish to incorporate in Nigeria or just simply supply your wholesalers from the UK?
Further appointing a good local partner in Nigeria will be one the keys to your success.
If you think it may be useful, we can put you in touch with our people on the ground who will be able to talk you through the whole process so that you can make an informed decision as to how or whether you wish to proceed.
I would be happy to discuss this process in much further detail with you, as there are many factors and processes to consider especially shipping goods to Nigeria.
From experience where new start ups get things wrong are the terms of sale INCO TERMS.
If you want to make as much profit as possible on your good understanding these terms are vitally important.
For your guidance getting the Consignee/Buyer to pay all destination charges would help you immensely – INCO TERM is CFR
If you have any further questions please do not hesitate to contact me.
Darren Thomas – Business Development Manager
Tel: 0113 3970 461