Export Pricing Strategies

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Export Pricing Strategies
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Export Pricing Strategies

• Entry pricing dynamics
• Export pricing strategy
• Export - related costs
• Terms of Sale
• Terms of Payment

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Entry Pricing Dynamics

• First - time pricing
• S
• P
• P
• To
• Competitive pricing
• M
• A

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Export-Pricing Strategy

• Cost-oriented pricing
• S
• D
• Demand Orientation
• M

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Export-related costs

• C
• O
• F
• D

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Terms of Sale

• Incoterms (International Commercial Terms)
  Internationally accepted standard definitions.
• EXW Ex-works price
• FCA free carrier for inland point. Seller loads
  goods on a mean of transport.
• FAS free alongside ship. Seller pays till a U.S.
  port.

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Terms of Sale

• FOB free on board. All costs up to the delivery
  of goods on a vessel.
• CIF/CFR Cost, insurance, and freight, paid till
  point of disembarkation.
• DDP/DDU Delivered Duty (Un)Paid.

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Benefits of CIF and DDP

• Offers foreign buyers easy-to-understand
  delivered cost for the deal.
• By getting discounts on volume purchases for
  transportation services, exporters cut shipping
  costs and can offer lower overall prices to
  prospective buyers.
• Control of product quality and service is
  extended to transport, enabling the exporter to
  ensure that goods arrive to the buyer in good
  condition.
• Administrative procedures are cut for both
  parties.

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Terms of Payment

• Range
• Cash-in-advance Open Account
• Letter of Credit (L/C) comes in between.
• T
• p
• r
• t

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EXPORT FLOW CHART (Example)
Inquiry
Estimates/Pro Forma Invoice
Contract
E X P O R T E R
I M P O R T E R
L/C
L/C
SHIPPING DOCUMENTS (ORIGINAL)
SHIPPING DOCUMENTS (ORIGINAL)
SHIPPING DOCUMENTS (ORIGINAL)
Shipping company/ Aviation company
B / L
SHIPPING DOCUMENTS (DUPLICATE)