Export Pricing And Costing.


Introduction

Pricing and costing are two different things and an exporter should not confuse between the two. Price is what an exporter offer to a customer on particular products while cost is what an exporter pay for manufacturing the same product.

Export pricing is the most important factor in for promoting export and facing international trade competition. It is important for the exporter to keep the prices down keeping in mind all export benefits and expenses. However, there is no fixed formula for successful export pricing and is differ from exporter to exporter depending upon whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a canalising agency.

Determining Export Pricing

Export Pricing can be determine by the following factors:

  • Range of products offered.

  • Prompt deliveries and continuity in supply.

  • After-sales service in products like machine tools, consumer durables.

  • Product differentiation and brand image.

  • Frequency of purchase.

  • Presumed relationship between quality and price.

  • Specialty value goods and gift items.

  • Credit offered.

  • Preference or prejudice for products originating from a particular source.

  • Aggressive marketing and sales promotion.

  • Prompt acceptance and settlement of claims.

  • Unique value goods and gift items.

Export Costing
Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable cost comprising various elements. It is advisable to prepare an export costing sheet for every export product.

As regards quoting the prices to the overseas buyer, the same are quoted in the following internationally accepted terms which are commonly known as Incoterm.

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What is New?
Date: 15-09-2014
Customs Notification No 76/2014 (NT)
Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Date: 15-09-2014
RBI/2014-15/231 A.P. (DIR Series) Circular No.30
Data on Import of Gold Statement - Submission under XBRL

Date: 12-09-2014
RBI/2013-14/228 A.P. (DIR Series) Circular No.29
Deferred Payment Protocols dated April 30, 1981 and December 23, 1985 between Government of India and erstwhile USSR

Date: 08-09-2014
RBI/2014-15/216 A.P. (DIR Series) Circular No.28
Risk Management and Inter Bank Dealings: Hedging Facilities for Foreign Portfolio Investors (FPIs)

Date: 05-09-2014
RBI/2014-15/214 A.P. (DIR Series) Circular No. 26
Exim Bank's Line of Credit of USD 26.50 million to the Government of the Republic of Honduras

Date: 05-09-2014
RBI/2014-15/215 A.P. (DIR Series) Circular No.27
Exim Bank's Line of Credit of USD 18 million to the Government of the Republic of Mauritius

Date: 04-09-2014
Order
Appointment of Common Adjudicating Authority

Date: 04-09-2014
Order
Appointment of Common Adjudicating Authority

Date: 04-09-2014
Order
Appointment of Common Adjudicating Authority

Date: 04-09-2014
Customs Notification No 75/2014 (NT)
Rate of exchange of conversion of each of the foreign currency with effect from 5th September, 2014


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