文档介绍：Unit
I. Basic knowledge of pricing
structure: cost of production, selling and delivery costs, taxes and tariffs.
Cost of production
Costs related to the product manufacture: labor, raw materials, component parts, salaries, heating & lighting, general maintenance of the factory building and plant.
Other ancillary costs directly allocated to the product: warehousing/storage, distribution involving inter-factory transfer handling, assembly costs.
Selling and delivery costs
Fixed costs: salesman’s salaries
Variable costs: packaging, transport, commissions, advertising and sales trip expenses, insurance premium.
Customs duties: other costs factors taken into account by the exporter.
2. Points to be considered in pricing: be acceptable to the customers; generate enough revenue to cover all its costs.
a. International market level: relevant market data petitive prices for similar products
b. Policies and regulations: those applying to a particular market area
c. Exporters' purpose and importers' requirements:
d. Supply and demand relationship: the world market may fluctuate (rising or falling of the market prices) with the change of it.
e. Others:
Adequate profit margin over your actual costs
Details of the contract: quality and quantity of the products, transportation costs, place and terms of delivery etc.
Method of payment and fluctuations of fore