Question
8:
I have a pricing strategy for my product that will place
me in a better negotiating position with prospective buyers.
When designing
your export strategy, pricing decisions are often a matter of affordable or
expensive. At this level, you should establish whether you are a low cost or
a high end supplier.
A high price needs to be justified on the basis of other features the product
has to offer. Features of the product such as its distribution and delivery,
its image (brand) and the image of your company, and the service which you
will deliver through the product which will justify the high price charged.
Once you have decided on your pricing strategy, in calculating your prices
you must take the following elements into consideration such as direct, in-direct
and market elements
Direct Elements
Direct and indirect costs of product
Competitive product features and overall quality
Current profit levels
Product life cycle
Recent price history and trends in the domestic market
In-direct Elements
Mark-ups in the target market
Tariffs and taxes
Your competitor's pricing policy
Inflation and possible currency fluctuations
"Anti-dumping", legislation in the country of importation
Market Elements
Demand for your product in the target market
Your projected market share
Feasibility of the price in the target market
Competition/substitutes in the target market
Customer attitudes toward the price of the product in the target market
Growth expectation in the target market ..
