Explain and illustrate the context of export pricing and costing
- Explain the role of pricing in distribution and demand.Enumerate various approaches to product pricing.
- Pricing objectives.
- Customer demand.
- Estimating revenue.
- Pricing strategies.
- Regulations on pricing.
- Identify and explain the different factors that influence export pricing.
- Illustrate the process in determining export price costing. Explain how different INCOTERMS differ from one another in this respect.
- Pricing your product for export.
- Options for calculating cost.
- Ex works.
- CFR.
- Price comparison.
- Discuss briefly the use of trade terms in export market.
- Developing and using trade terms in export market.
- The trade terms in export pricing and costing.
- Evaluate the effect of price differentials duty, consumer action and grey imports on an export market.
To maximize short-term profits you try to squeeze as much money out of sales of the product as possible, even though fewer customers may make a purchase. Your strategy may be to charge premium prices for website design services. You end up with less customers, but then dealing with a lot of customers multiplies your problems. And you can make more profit off each customer. Or you may need to maximize profits in order to satisfy an impatient boss or investor. The other main strategy is to price your service lower to gain marketshare. You may want to maximize the number of subscribers to your online Internet access business, even though you don't make as much on each customer. But you know that later you'll be able to sell these subscribers other services such as web hosting, e-commerce, website design, DSL, and a host of others once they get comfortable with you. You don't make as much early, but you plan to make money later with "back end" sales.
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