Export Product Pricing Policy (EPPP)

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Published: 01st December 2010
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Pricing strategy is a complicated matter in Foreign trade. Pricing always determined on various factors in export business. Country Economy, political situation, per ca pita income, GDP growth purchasing power of consumers, consuming habits of products, exporting competitor's prices and cost of similar product's domestic cost.

Wrong or unclear export pricing policy can lead to total failure in foreign markets. Scan to various countries product import or demand opportunities and make the export pricing plan accordingly. Each exporter's need to survey report about their competitor and their products with exporting cost similar market.
Exporters must aware about domestic raw material price, labor cost and production expenses.

In the commodity markets have large number of importers and exporters and their prices and export import policy changes time to time by the government and some products are exporting through government agencies, need to regularly check the prices and aware about the annually quota available to foreign country/countries. These commodities are Sugar, Wheat, Tea, Coffee, Food grains,
cotton etc.

Competitive prices need to calculate carefully by exporters due to
competition in same market, because there may chances of rejection of products and importers need to replacement of the imported product or exporter will re-work. in this matter, than the prices will go over the exported prices.

When the foreign market skimming up than the prices of export product very high and demand of products are unique or limited than exporters need to retain the some discount prices on export, mostly this type of issues raising in ready made garment sectors or electronic items. Some time these situation can see in seasonal trade in foreign market.

Maintain to export pricing structure different according to country import laws, tariff structure and economic power and GDP growth. Mostly it is found that demand is not fulfill due to high cost of products and consumer wait for next down the prices or reduces the duty tax in import. In this cases the Cheap products can Export or reduce the export
product cost or export profit margin to retain the customs for next business offer.

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