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Export Pricing

Export pricing is affected by three factors:

1.    The price destination (i.e., who it is that will pay the price-final consumer, independent distributors, a wholly owned subsidiary, a joint venture organization).

2.    The nature of product (i.e., whether it is raw or semi processed material components, finished or largely finished products or services, or intangible properly, patents, trademark formulas).

3.    The currency used for billing (i.e., the currency of the purchaser’s country, the seller’s home country currency, or the leading international currency).

Export Price Quotation

There are five principal ways of quoting export prices, ex-factory, free along-side-ship (FAS), free on board (FOB), cost insurance and freight (CIF) and delivered duty paid.

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