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2. Product Package and Name checklist (a) Does the product need extra protection from rough handling, or climatic extremes? (b) Is the product easily recognizable and appealing to the foreign customer? (c) Does the label conform to local regulations? (d) Does the label clearly indicate the contents, even to persons who may be illiterate? (e) Does the label need to be in a foreign language? (f) Does the logo or brand name have another, perhaps undesirable meaning in the local language? (g) Does the package need to be larger or smaller than the one sold locally? Perhaps local consumers can only afford to buy smaller quantities of it. (h) Have the brand name and trademark been registered in the foreign country?
3. After-Sales Service However, machinery and equipment require a certain level of service which can determine whether the customer buys the product or someone else's. Usually, the best way to handle after-sales service is to let the distributor provide it.
The price charged for the export product, should cover all the various costs involved in producing and marketing it. Sometime, an exporter may be satisfied with just breaking even or even incurring a loss - with a view of getting established in a new market. It is tempting to sell products at a price that covers only the variable costs of each unit sold to make some contribution to the fixed costs or factory overhead. There is always the risk that the exporter can be accused of dumping its products abroad and are required to pay anti-dumping import duty. An exporter should calculate and determine all the costs involved in selling its product in the foreign market, including:
1. Foreign agent's commission. Any pricing strategy must be flexible to take advantage of: special discounts for quantity purchases or special introductory prices.
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Recommended references related to
Export Pricing
Pricing procedure for
costing and export quotation.
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