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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: 22-05-2015
DGFT Public Notice No. 13/2015-2020
Implementation of Track and Trace System for export of drug formulations.

Date: 22-05-2015
Notification No. 20/2015-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of Pentaerythritol' , originating in, or exported from,Russia for a period of five years.

Date: 22-05-2015
Notification No. 21/2015-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of Cast Aluminium Alloy Wheels or Alloy Road Wheels , originating in or exported from People’s Republic of China, Korea RP and Thailand for a period of five years from the date of imposition of the provisional anti-dumping duty, that is, 11th April, 2014.

Date: 22-05-2015
Notification No. 22/2015-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of USB Flash Drives', originating in, or exported from, People's Republic of China and Chinese Taipei for a period of five years.

Date: 21-05-2015
RBI/2014-15/603 A. P. (DIR Series) Circular No. 102
Rupee Drawing Arrangement - Increase in trade related remittance limit

Date: 21-05-2015
Customs Notification No 47/2015 (NT)
Rate of exchange of conversion of the foreign currency with effect from 22nd May, 2015

Date: 21-05-2015
RBI/2014-15/608 A. P. (DIR Series) Circular No. 103
External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) – Mobilisation of INR

Date: 20-05-2015
Customs Notification No. 19/2015-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of Sodium Citrate, originating in or exported from China PR for a period of five years.

Date: 20-05-2015
DGFT Notification No 07/ 2015-2020
Amendment in import policy of fuels, incidental to the import of ship for ship breaking, under Chapter 27 of ITC (HS), 2012 Schedule 1 (Import Policy).

Date: 19-05-2015
Service Tax Notification No 13/2015 (ST)
Seeks to amend notification No. 26/2012- ST, dated the 20th June, 2012