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A key tasks of an exporter is to calculate the price
that the foreign buyer has to pay for his product.

How to do Costing for Export?

The first step is to use the cost-plus method that determine the export pricing competitiveness of your products.

The Cost Plus Method of Calculation require a costing sheet so that it enable the exporter or manufacturer to:

Check that every expense has been covered in arriving at the selling price and provide a detailed record of the terms that have been quoted to the foreign buyer.

The items covered by the export costing sheet are:

1. Unit cost of Product - The starting point in export pricing is the production cost per unit of the product. This would be the variable cost plus fixed cost or overhead.

2. Profit - Normally, profit will have already been included in the domestic price. However, if it is insufficient for the risk involved in selling abroad, an extra allowance for profit can now be added.

3. Agent's commission abroad - This is usually calculated on a percentage basis... Read More


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