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Unraveling the Mystique of Export Pricing S. Tammer Cavusgil.

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Presentation on theme: "Unraveling the Mystique of Export Pricing S. Tammer Cavusgil."— Presentation transcript:

1 Unraveling the Mystique of Export Pricing S. Tammer Cavusgil

2 Factors in Export Pricing  Nature of the product/industry  Location of the production facility  Chosen system of distribution  Location and environment of the foreign market  US government regulations  Attitude of the firms management

3 Alternative approaches  Rigid cost-plus strategy  Flexible cost-plus strategy  Dynamic incremental Strategy

4 Decision process Verify export market potential Determine company sales potential at given prices Analyze import, distribution, and transaction barriers Examine corporate goals and preference for pricing strategy Select pricing strategy

5 Check consistency with current price setting Implementation: Select tactics, distributor prices, and end user prices Monitor export performance and make adjustments as necessary

6 Transfer Pricing by Multi- national Marketers: Risky Business John P. Fraedrich Connie Rae Bateman

7 Transfer pricing methods  Comparable/Uncontrollable Price Method  Resale Price Method  Cost-Plus Method  Other Methods


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