Are you staying on top of changing export regs?

New export regulations. Enhanced export enforcement. An increasing push toward AES.

With all that's happening in the world of international trade, now is not the time to let your knowledge of the export documentation process become outdated. That's why InterMart is once again offering our Shipping Solutions 2000/Export Documentation seminar.

This $545 day-long seminar covers the entire export documentation process emphasizing the use of Shipping Solutions 2000. Every attendee will be seated at his or her own desktop computer running Shipping Solutions while our instructor, Cathy Petersen, takes the class step-by-step through the process of assembling a shipment and completing the documents.

As in the past, this August 23, 2002, event will be held in the computer lab at National American University in the Mall of America in Bloomington, Minnesota. Come for the Friday seminar and then spend the weekend exploring the Mall of America's 520 retail and specialty stores, dozens of unique dining and entertainment options, and amazing attractions.

(In the meantime, you'll be saving your company money on your airline ticket because of your Saturday night stay!)

We have made arrangements with the Days Inn Airport for a special room rate of $69 single or $89 double room rate. The Days Inn Airport is located directly across the street from the Mall of America and provides free shuttles from the Minneapolis/St. Paul International Airport to your hotel and to the Mall of America.

Once again we are offering a $100 discount off the seminar registration fee for all Annual Maintenance Program subscribers. If your company doesn't currently subscribe to the Maintenance Program, now is the perfect time.

The Shipping Solutions 2000/Export Documentation seminar has always filled up quickly. Register online or call InterMart at 1-888-890-7447.

Questions about Shipping Solutions?

InterMart now offers an easy way to learn more about Shipping Solutions 2000, America's #1 selling export documentation software.

Exporters can register to watch a FREE one-hour demonstration of the software online. The live demos will take you on a guided tour of Shipping Solutions software, answering any questions you may have about the program.

The free online demo is available almost every Tuesday at 1 p.m. Central Time.  In addition, companies can arrange a private demo by sending an email to info@intermart-inc.com.

In addition, the Shipping Solutions  Flash presentation walks you through the entire documentation process using the software. You can view the Flash demo at the Shipping Solutions website.

And, of course, you can get a free demo version of Shipping Solutions 2000 from our website or by calling InterMart toll-free 1-888-890-SHIP.

Price Your Exports for Profit

By Joe Robinson

One of the most challenging issues for exporters is pricing their goods to optimize profits and sales. Companies often ask me if there is an “x” factor or a “multiplier” that they should apply to domestic prices to compensate for the additional costs of exporting.

Unfortunately, it’s not that simple. A company needs an astute sales and marketing team that understands and can compensate for the hidden costs of selling a product in a given market.

By simply multiplying domestic prices by an “x” factor, you run the risk that the multiplier is too high so your products aren’t competitive. On the other hand, your multiplication factor may be too low, and your price doesn’t adequately cover additional costs. In this case, your company’s export sales may not generate enough profit or may even create a net loss.

Pricing Objectives

Export pricing is a balancing act. On one end of the lever, an exporter needs to price his product attractively enough to expand sales. On the other side of the lever, he needs to price his product high enough to maximize profit.

These two objectives are dynamic and require constant vigilance based on observance and feedback from the marketplace. Sales representatives, customers, trade associations and competitive price movements are the primary sources for this feedback.

Pricing Strategy

A good strategy used by veteran sales people is to create more than one price list.

A successful small exporter recently stated that he uses several official price lists. His U.S. price list is his calculating basis. From this base, his export price lists are customized and dedicated to a particular country or region. However, he cautions:  “Do not under price a product or you may face dumping charges.”

Another old hand tells his young sales people: “Never give an overseas customer, rep, or agent your domestic price list. You should only provide a price list customized for that particular market.”

For example, his official price list for China is approximately 30 percent inflated over the U. S. domestic price list. This savvy exporter projects additional costs of selling in China to be 8.2 percent higher than domestic costs. The Chinese expect to negotiate lower prices from whatever your initial offer. His China price list includes a negotiating cushion that enables him to potentially concede up to 20 percent and still meet or slightly exceed profit on domestic sales.

Cost Considerations

There are two types of costs that need to be added to the export price structure:

• Direct costs. These include expenses such as product modifications or changes for a particular market, special labeling for a foreign market, and translation costs.

• Indirect costs. These include such things as higher telephone bills, higher travel costs, and staff costs to prepare export documents.

Do not confuse these direct and indirect product costs with the costs of getting your goods to market. Expenses such as export packing, freight and insurance should be itemized separately from product costs.

If you lump all costs together and provide a single price, you may potentially elevate your product offer so that you appear to be overpriced. Savvy competitors will take advantage of your higher single price. Customers also leverage a single “composite” price as a negotiating tool to request cost reductions.

Conclusion

Be sure to treat export pricing as a major consideration in your overall business planning and strategy. This will pay dividends and create a stronger export department.

Mr. Robinson's bio