Export Pricing And Costing.


MODES OF INTERNATIONAL TRADE

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.

Table of Contents

 

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What is New?
Date: 21-04-2014
RBI/2013-14/567 A.P. (DIR Series) Circular No.124
Foreign Direct Investment in Pharmaceuticals sector – clarification

Date: 17-04-2014
Customs Notification No 32/2014 (NT)
Rate of exchange of conversion of each of the foreign currency with effect from 17th April, 2014

Date: 16-04-2014
RBI/2013-14/566 A.P. (DIR Series) Circular No. 123
Foreign Direct Investment (FDI) in Limited Liability Partnership (LLP)

Date: 15-04-2014
DGFT Public Notice No.58/(RE 2013)/2009-14
Amendment in the date of effect for implementation of Self-certification regarding compliance of bar-coding requirements on secondary and tertiary level packaging on export consignment of pharmaceuticals and drugs.

Date: 15-04-2014
Customs Notification No 31/2014 (NT)
Amends Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Date: 11-04-2014
Customs Notification No. 15/2014-Customs (ADD
Seeks to levy provisional anti-dumping duty on imports of cast aluminium alloy wheels or alloy road wheels used in motor vehicles when imported into India from People’s Republic of China, Korea RP and Thailand for a period of 6 months

Date: 10-04-2014
RBI/2013-14/560 A.P. (DIR Series) Circular No.121
External Commercial Borrowing (ECB) Policy – Review of all-in-cost ceiling

Date: 10-04-2014
RBI/2013-14/561 A.P. (DIR Series) Circular No.122
Trade Credits for Imports into India – Review of all-in-cost ceiling

Date: 10-04-2014
RBI/2013-14/559 A.P. (DIR Series) Circular No.120
Rupee Drawing Arrangement – ‘Direct to Account’ Facility

Date: 09-04-2014
DGFT Public Notice No.57/(RE 2013)/2009-14
Procedure for export of pulses to Republic of Maldives


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