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    Pricing Process and Strategy, Cost and Price Calculations For Export

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    sanjayttm
    This document outlines the pricing process and strategy for export pricing, including cost and price calculations. It discusses the key steps: conducting a cost analysis, market analysis, determining price limits based on costs and market factors, setting pricing objectives, and calculating a price structure. The main elements that determine cost and thus price are direct costs, factory costs, total costs, selling expenses, and total cost of sale. The price structure breaks down costs from the factory through transport, documentation, freight, duties, clearing, and margins by various parties to determine the final price to the consumer.

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    Pricing Process and Strategy, Cost and Price Calculations For Export

    Uploaded by

    sanjayttm
    31 views7 pages
    This document outlines the pricing process and strategy for export pricing, including cost and price calculations. It discusses the key steps: conducting a cost analysis, market analysis, determining price limits based on costs and market factors, setting pricing objectives, and calculating a price structure. The main elements that determine cost and thus price are direct costs, factory costs, total costs, selling expenses, and total cost of sale. The price structure breaks down costs from the factory through transport, documentation, freight, duties, clearing, and margins by various parties to determine the final price to the consumer.

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    International Pricing

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    © Attribution Non-Commercial (BY-NC)

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    This document outlines the pricing process and strategy for export pricing, including cost and price calculations. It discusses the key steps: conducting a cost analysis, market analysis, determining price limits based on costs and market factors, setting pricing objectives, and calculating a price structure. The main elements that determine cost and thus price are direct costs, factory costs, total costs, selling expenses, and total cost of sale. The price structure breaks down costs from the factory through transport, documentation, freight, duties, clearing, and margins by various parties to determine the final price to the consumer.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    31 views7 pages

    Pricing Process and Strategy, Cost and Price Calculations For Export

    Uploaded by

    sanjayttm
    This document outlines the pricing process and strategy for export pricing, including cost and price calculations. It discusses the key steps: conducting a cost analysis, market analysis, determining price limits based on costs and market factors, setting pricing objectives, and calculating a price structure. The main elements that determine cost and thus price are direct costs, factory costs, total costs, selling expenses, and total cost of sale. The price structure breaks down costs from the factory through transport, documentation, freight, duties, clearing, and margins by various parties to determine the final price to the consumer.

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    You are on page 1of 7

    PRICING PROCESS AND STRATEGY,

    COST AND PRICE CALCULATIONS


    FOR EXPORT

    Presented by
    Sanjay Kr. Singh
    Steps involved in export pricing procedure
     Cost Analysis-
    Cost of product
    Cost of distribution
    Cost of marketing support
     Market Analysis
    Market size and segment relevant to the product
    Price level and price categories in respect to the product
    competition
    Contd….
     Determination of price limits
    Lower limits - Cost limits
    Upper limits – Market limits
     Determination of pricing objectives
     Calculation of price structure
     Price quotation and terms
    Main elements of Cost Leading to Price
     Direct cost
     Factory cost
     Total cost
     Selling expense
     Total cost of sale
     Profit
    Main Elements of Price Structure for Export
    1. Factory-cost of goods
    2. Export Packing, marketing and labelling
    3. Loading for transport from factory
    4. Transport to dock or Airport
    5. port /Airport handling charges and fees
    6. Cost involved in documentation
    7. Fees for consular invoice/Certificate of Origin
    1 to 7 == FOB Price
    Contd….
    8. Insurance Premium and cost of policy
    9. Ocean freight/Air freight charges
    10. Unloading charges at destination
    11. Port/Airport handling charges and fees at destination
    1 to 11 == CF Price
    12. Import duty and taxes
    13. Clearing agent's fees
    1 to 13 == Landed Cost
    Contd….
    14. Transport to importer's warehouse
    15. Importer's margin and mark up
    16. Wholesaler's margin and mark up
    17. Retailer‘s margin and mark up
    18. Other local taxes, if any
    1 to 18 == Price to Consumer

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