Get Your Price Right
Imagine knowing what your winning export price is.
Start with Incite.
One of the most important things you will do for your export business is set your price strategy. Getting it right is crucial, but how do you know what “right” looks like? Don’t take your customers word for it – you could end up giving away too much margin.
To find out what the right price is for your products, find out how your competitors are priced. If your goal is to have the lowest price in your category, how will you maintain this position? On the other hand, if you’re aiming for a premium position in the category, have you considered how you are going to support this with a strong marketing campaign that backs up your premium price point?
To get your price just right you’ll need a cost model that starts with your target retail price and works backwards to the required export price, factoring in all the relevant supply chain margins.
You’ll need to know:
What your market entry model is (eg distributor, consolidator, 3PL)
What the typical supply chain margins are in your export market
Knowing the typical supply chain margins for your chosen market entry model will put you in the best position to successfully negotiate a winning deal with your export customers.
The risk of not getting it right is a margin spread that can result in an export price that is not sustainable for you, or retail pricing that is far too high for your category. In the worst-case scenario both of these pitfalls will occur.
Need help with your pricing strategy? Get in touch.
Read more about how we’ve helped develop high growth Asian export markets for our clients.