One of the challenges any company faces when looking to sell global is trying to set prices and the terms of sale for their products and services in foreign markets.
There are many costs incurred in selling overseas and before setting any pricing strategy you need to ensure that all costings and all risk management costs and strategies have been factored into your pricing strategy.
Factors that can immediately impact on your international pricing strategy and terms of sale and ultimately your profit margin include:
- currency exchange rates
- economic conditions
- production expenses
- your competitors and the consumers in your target market
- export transaction costs
- risk management expenses
- managing your freight costs
Before you enter any new market you need to ensure that your price is competitive with what is on offer in the market, but you will also need to factor in the cost of marketing and managing your export transaction and risk management strategies.
Getting your international pricing strategy right is crucial to the success of your business. It is difficult to go back and renegotiate your price once this has been set and also you ultimately cannot risk potentially not getting paid.
Register: Click here to register