Getting your pricing right is one of those areas where exporters, particularly first-time exporters, can find themselves in trouble. Pricing is not an easy task – with so many variables at play, potential profit can quickly turn into a disaster. Put those back of the envelope calculations away; it’s time to get your pricing strategy right and achieve greater profitability and competitiveness.
It’s critical you take a disciplined approach and capture all costs associated with exporting and selling your product, and work out how you are going to recover these once you start moving your product offshore. You’ll need to think about delivery costs, packaging variations, tariffs and currency fluctuations. Your foreign customers and consumers are going to look at what you are selling products for in New Zealand – so you may not have the option of just adding these costs on top. This is where pricing gets tricky, and you will need to take a more calculated strategy.
Consider your pricing options now and work out an acceptable price that will make you a profit – but not price you out of your market. If you discover that you’re unlikely to make a profit, then you are better equipped with the information to decide whether to walk away now and focus your resources on making money elsewhere.
Understanding pricing options
This Export Essentials guide introduces you to a few essential guidelines that will help you to establish the right pricing strategy for your business. You’ll find information on:
- Key issues to allow for in your export pricing
- Common pricing strategies
- Two pricing methods, Cost Plus and Top Down, and the importance in using both in parallel
- Exchange rates, quoting and forward exchange contracts
- Top tips for export pricing
Download our free guide on this page and become clear on your pricing model and strategy.
Watch this four-minute video of Jai Basrur, NZTE Beachhead Advisor and James McLeod, Made4Baby sharing their thoughts on pricing products for offshore markets. James is very clear on their product and price positioning being mid-point in the market, and advises distributors that their product is not for the supermaket shelves as they are not a mass produced small margin product.”
If you are looking for a more in-depth understanding of the approaches to pricing and strategies for export then register now and join us at the next Export Essentials Workshop. We’ll give you practical tools and techniques to take your business global.