Pricing your goods
for the EU market
Date: May 17th 2016
Venue: exporTT’s Training Room, 3rd Floor Charlotte St.
Facilitator- Michele Kalloo
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28 Countries
500 million consumers
16% of total world trade
Germany, France, the United Kingdom and Italy are
individually among the ten-largest economies in
the world.
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TODAY’S WORKSHOP
Common export pricing mistakes
The importance of export pricing
INCOTERMS
Export Costs
Mark up vs. Margin
Cost Plus and Top Down Pricing Methods
Export Pricing Strategies
Export Price List
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SOME COMMON EXPORT
PRICING MISTAKES
1) Expecting to Charge the Same Price in all export markets.
2) Conducting insufficient research on the competitive
environment in the target export market.
3) Using only a Cost Plus Approach to Setting Export Prices.
4) Not finding ways to modify the product to meet the required
export market entry price.
5) Treating Price as the only factor that will impact export success.
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WHY IS EXPORT
PRICING IMPORTANT?
Profitability - Costs
Competitiveness - Competition
Marketing Mix – Customer Demand
and Expectation
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PROFITABILITY
The goal of export pricing
should be to maximize profit
Pricing is an opportunity for
substantial and sustained
revenue and margin
improvement.
The "best" price for a product is
not necessarily the price that
will sell the most units. Nor is it
always the price that will bring in
the greatest number of sales
dollars. Rather the "best" price
is one that will maximize the
profits of the company.
Just a few points improvement
in price can translate into
substantial enhancement of a
firm's profitability.
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COMPETITIVENESS
The Price of one good
in relation to another
is referred to as its
competitiveness
The Law of Demand
states that the higher
the price of a good
the lower the demand
for that good.
Price is a strategic
factor used in
developing
competitive
advantage in a market
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QUANTITY PURCHASED
AT DIFFERENT PRICE LEVELS
Consumers will respond differently at different price points.
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MARKETING MIX
Price is an important
lever for positioning
and segmentation
It is the only
component of the
marketing mix that
generates income (the
other 3 generate costs)
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POSITIONING AND
SEGMENTATION
PAPER TOWELS
POSITIONIN
#
G
PRICE TT$ /
ROLL
1
PREMIUM
21.99
2
VALUE
14.99
3
ECONOMY
8.99
BRAND
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BASIC EXPORT PRICING
FRAMEWORK
PRICE CEILING
(The maximum price that the market
is willing to pay for the product)
PRICE FLOOR
(The minimum price that the product
can be sold at to cover costs)
PROFIT
(The difference between the price ceiling and
the price floor)
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RECAP
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PRICING
OBJECTIVES
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PRICING OBJECTIVES
 Revenue maximization - seeking to maximize current revenue with
no consideration for generating good profit margins. The underlying
objective here is often to maximize long-term profits by increasing
market share, through the lowering of costs.
 Throughput maximization - seeking to maximize the number of
units sold or the number of customers served in order to decrease
long-term costs.
 Profit margin maximization - attempting to maximize the unit profit
margin through the lowering of product quality and costs.
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PRICING OBJECTIVES

Quality leadership - using price to signal high quality in an attempt to position the
product as the quality leader in a market.

Partial cost recovery - some companies that have other sources of revenue may
seek to only partially recover their product costs by subsidizing the costs from their
other sources of product revenue. This could be used for various reasons, including: Using a particular product on a loss-leader basis to enter or sustain a market
position on a short-term basis, OR
 As a mechanism to write-off corporate tax, OR
 Some other business reason.

Survival strategy - in some serious market situations (such as market decline
and/or overcapacity in the market), the goal may need to be to select a price that will
only recover the costs and, thereby, enable the company to remain in the market. In
such cases, survival may take precedence over profit generation - this objective is
only considered to be a very short-term strategy.

Status quo situation - where the company may seek price stabilization in order to
avoid price wars and maintain a moderate but stable level of profit from a particular
marketplace.
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SIMPLIFIED CLASSIFICATION
OF EXPORT COSTS
1. COSTS PRIOR TO EXPORTING
2. COSTS AT COUNTRY OF DESTINATION
3. COSTS RELATED TO SELLING OR MARKET STRUCTURE
IN EXPORT MARKET
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COSTS PRIOR TO EXPORTING
The costs a product may incur in-house/in-country

Warehousing and storage costs.

The cost incurred in relation to the preparation of export documentation and
meeting any other export formalities.

The cost of packing products for export.

Any costs related to pre-shipment inspection, if required.

The cost of transporting the product from the warehouse to the port of
departure ̃ i.e. airport, sea port, etc.

If selling on a CIF/C&F basis, then the cost of freighting the products to the
destination port.
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COSTS AT COUNTRY OF
DESTINATION
 The cost of clearance documentation at Customs.
 The costs related to the payment of any duties, tariffs,
and taxes.
 The cost of meeting any product testing requirements, if
any (relates to a product being able to meet local
Product Standards).
 The cost of transportation to warehouse/storage facility.
 The costs related to the logistical distribution of the
product.
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COSTS RELATED TO SELLING OR
MARKET STRUCTURE IN EXPORT
MARKET

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
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The cost of distributor/agent’s fees.
The cost of any discounts offered to distributor/agent and/or
special end-users.
The costs related to advertising and any public relations (PR)
operations.
The costs related to setting-up a marketing operation:Costs related to meeting the costs of establishing a presence
i.e. legal, accounts, etc.
Setting-up any office facilities.
Setting-up any maintenance/service facilities.
Setting-up product return systems.
Travelling to the market.
Costs related to training of distributor/agent.
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ADDITIONAL CONSIDERATIONS
WHEN SETTING EXPORT PRICES
-
COGS
INCOTERMS
EXPORT CREDIT TERMS
EXCHANGE RATE FLUCTUATIONS
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COSTS
NEVER SELL A
PRODUCT
BELOW COST
In order to derive a
profit the product
must be sold for
more than its cost
Knowing the cost of
the product is
critical to the export
pricing process
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It is very important that exporters
understand the details of each Incoterm
they may use and their responsibility
under each one.
One common mistake, that can lead to
confusion, is not including a named place
after the Incoterm. If you are using FOB
and shipping from Point Lisas, then the
correct way to communicate this is FOB
Point Lisas, Trinidad. Not including a
named place here means the buyer will
not know where they have to arrange and
pay for freight from.
Which Incoterm you use depends on your
situation and that of the buyer.
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INCOTERMS
Whilst there is no rule about
which Incoterm should be used
for particular countries or
industries, buyers will most likely
have a strong preference for how
they buy from overseas.
Some Incoterms result in less
effort for the customer, so require
more arrangements to be made
from the exporters’ side. This may
be a good customer service
offering from your business
should buyers be seeking to have
goods delivered right through to
their door.
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EXPORT CREDIT
As an exporter you may be
asked to offer credit terms.
Or you may find that you
need to match your
competitors on credit terms.
Extending credit terms will
have a real cost impact on
your company because cash
flow is critical to any
business.
If you decide to offer credit
terms you will have to
estimate the cost of the time
it takes to receive payment at
the end of the credit period
and build this cost into your
price.
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EXCHANGE RATE
FLUCTUATIONS
Most Export Prices are
quoted in a foreign currency
such as United States
Dollars
If the local currency in the
importer’s market depreciates,
or goes down in value against
the foreign currency that you are
quoting in between order
confirmation and payment date,
it will cost the importer more to
pay for your product
This is exchange rate risk
and can be very costly for
exporters if not managed
appropriately.
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EXPORT PRICE CURRENCY
• You will have to decide whether to invoice
in the local currency of the export market
or# not.
Country
City
Currency
1
France
Lyon
Lille
Euro
2
Netherlands
Rotterdam
Amsterdam
Euro
3
United Kingdom
London
Pound
Sterling
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INDIVIDUAL ASSIGNMENT
EXPORT PRICE CURRENCY
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KNOW YOUR TOTAL
COST OF EXPORTING
Estimate the full cost of selling your
products in the European Union
Figure out the HS Codes for your products
Calculate the duties, taxes, and other fees
that might apply to your shipment
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Freight Rates
Cargo Insurance
Import Duty
Excise Tax
Other Taxes such as Environmental
Price Controls
Mark Ups or Margins of the Trade
Channels
 Retail tax (VAT)
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FREIGHT RATES
Freight rates vary depending on:
 Mode of transport (can be multimodal)
 Type of Cargo
 Destination Port
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MODE OF TRANSPORT BEING
USED
1
Road Truckage
(container haulage)
2
Sea
3
Air
4
Rail
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TYPE OF CARGO
1
Container
Cargo
2
Liquid Bulk
20’, 40’ , 40’HQ, Refrigerated
containers
(packaged goods)
Liquid Petroleum, Gas
3
Dry Bulk
Grains, Loose Cement
4
Break bulk
5
Ro Ro
Bales, Pallets, Barrels,
Cartons, Drums
(packaged but not
containerized)
Vehicles
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SEA TRANSPORT IN
THE EUROPEAN UNION
 Largest mode of transport for goods entering
Europe.
 1200 sea ports, the Port of Rotterdam, the
Netherlands, being the largest one, followed by
Antwerp, Belgium.
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CARGO INSURANCE
 All Risk: This type of policy typically covers any
physical loss or damage from external causes, with
some exclusions listed.
 Free of Particular Average (FPA): This is what’s
known as a Named Peril policy, which will list
exactly what is covered. It is important to note that
theft is usually not covered under this type of policy.
 Shipment-by-Shipment: This is insurance
coverage through the carrier who is shipping your
goods. There may be certain exclusions, including
defects in the transportation vessel, criminal acts on
the part of the vessel’s crew, acts of God, and acts
of war.
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IMPORT DUTY
Import duties are determined by:
 HS Code
 Trade Agreements
 Government or Market Priorities e.g.
protected sector or industry
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TARIC
• TARIC is the Integrated Tariff of the European
Union and is a multilingual database in which
all measures relating to EU customs tariff,
commercial and agricultural legislation are
integrated.
• You may check the import duty applicable to
your tariff code by consulting the TARIC
database.
• http://ec.europa.eu/taxation_customs/dds2/ta
ric/taric_consultation.jsp?Lang=en
• NB: The TARIC does not contain information relating to
national levies such as rates of VAT and rates of excises.
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EXCISE TAX
• Excise taxes are charged on specific
categories of goods such as
 Alcohol
 Tobacco
 Energy products
• For more information you can consult the link
below
http://ec.europa.eu/taxation_customs/taxation/e
xcise_duties/index_en.htm
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VAT OR RETAIL SALES TAX
In the European Union VAT has different
application rates:
 Standard Rate
 Reduced Rate
Super Reduced Rate
 Parked Rate
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RETAIL SALES TAX
Member States
Belgium
Bulgaria
Czech Republic
Denmark
Germany
Estonia
Ireland
Greece
Spain
Code
Super Reduced Reduced Standard Parking
Rate
Rate
Rate
Rate
BE
BG
CZ
DK
DE
EE
IE
EL
ES
4.8
4
6 / 12
9
10 / 15
7
9
9 / 13,5
6 / 13
10
21
20
21
25
19
20
23
23
21
12
13.5
-
France
FR
2.1
5,5 / 10
20
-
Croatia
Italy
Cyprus
Latvia
Lithuania
Luxembourg
Hungary
Malta
HR
IT
CY
LV
LT
LU
HU
MT
4
3
-
5 / 13
5 / 10
5/9
12
5/9
8
5 / 18
5/7
25
22
19
21
21
17
27
18
14
-
NL
-
6
21
-
AT
PL
PT
RO
SI
SK
FI
SE
-
10 / 13
5/8
6 / 13
5/9
9.5
10
10 /14
6 / 12
20
23
23
20
22
20
24
25
13
13
-
UK
-
5
20
-
Netherlands
Austria
Poland
Portugal
Romania
Slovenia
Slovakia
Finland
Sweden
United Kingdom
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N.B.: Exemptions with a refund of tax paid at preceding stages (zero rates) are not included above (see section V)
OTHER VAT RATES
• http://ec.europa.eu/taxation_customs/taxatio
n/vat/topics/rates_en.htm
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DIFFERENT PRICES
FOR DIFFERENT MARKETS
Calculating a different price for each of your
export markets is important because:
A) Distributor, wholesale and retail mark-ups are often
different in each market and industry.
B) Your competitors and the way that they price their
products or services are likely to be different in
different markets, and you have to take this into
account when setting your prices.
C) The price that end users are willing to pay for your
products will not be the same in all markets around the
world.
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FACTORS THAT IMPACT
SALES MARK UPS
• Target Market & Positioning – Mass
Market vs. Niche
• Volume, Market Share and Profit Goals
• Distribution Channel e.g. Retail vs.
Wholesale
• Length of distribution channel
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DISTRIBUTION CHANNELS IN
THE EU
• Retail structures vary significantly across
Europe and this seems to add to price
differences.
• For instance, larger outlets can often offer
economies of scale which, if passed on to
consumers, can lead to lower prices.
• Discounters, which are shops with a business
model based on low-prices, can increase
competition in the retail sector, which puts a
downward pressure on prices in other
competing outlets.
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EU DISTRIBUTION CHANNELS
(FMCG’s)
1. Small
Supermarkets
2. Discounters
3. Hypermarkets
and Superstores
4. Convenience
Stores
5. Online
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TYPES OF RETAILERS
• Supermarkets are defined as shops selling
groceries with a sales area between 400 and
2500 sqm.
• Hyper-markets are defined as shops selling
groceries with a sales area larger than 2500
sqm.
• Traditional shops are defined as small
shops with a sales area that is in general less
than 400 sqm.
• For some countries in the EU it is not
possible to make this distinction.
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EU TRADE CHANNALES
(FASHION AND CLOTHING)
• Clothing Chains
• Department
Stores
• Hypermarkets
• Discounters
• Webshops
• Factory Outlets
• Designer Shops
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• Research is best conducted on a countryby-country basis.
• Although the EU is a single market,
exporters must be sensitive to the fact that
the economies of each member state are
different.
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INDIVIDUAL ASSIGMENT
PRICE BUILD UP FACTORS
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PRICE IS NOT THE ONLY FACTOR
Some products are sold purely on the basis of
price
But other factors also impact attracting and
retaining export customers such as:
• Credit terms
• Delivery speed and reliability
• Customer service and warranty
• After-sales care
• Quality
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MARK UP VS. MARGIN
Understanding the difference
Between
Mark Up
and
Margin
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Markup
• Markup is the dollar amount by which the
cost of a product is increased in order to
derive the selling price.
• Markup percentage is the percentage
difference between the actual cost and the
selling price.
MARK UP CALCULATION
Cost of Goods Sold ($)
70.00
Mark Up ($)
30.00
Selling Price ($)
100.00
Mark Up Calculation
Mark Up (%)
= (Selling Price- COGS) /COGS
= (100.00-70.00)/70.00
42.9%
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Gross Margin
• Margin (also known as gross margin) = Sales
minus the Cost of Goods Sold.
• For example, if an item sells for $100 and costs
$70 to manufacture, its margin is $30.
• Or, stated as a percentage, the margin
percentage is 30% (calculated as the margin
divided by sales).
GROSS MARGIN CALCULATION
Cost of Goods Sold ($)
70.00
Margin ($)
30.00
Selling Price ($)
100.00
Gross Margin
Gross Margin (%)
= (Selling Price – COGS)/Selling Price
= (100.00-70.00)/100.00
30%
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INDIVIDUAL ASSIGNMENT
MARK UP AND MARGIN
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EXPORT PRICING MODELS
COST PLUS APPROACH
Cost of
Product
Cost to
export
TOP DOWN APPROACH
Target
Retail
Price
Cost to
export
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COST PLUS
The starting point is
the COGS .
A mark up is then
added to the COGS.
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COST PLUS
ADVANTAGES
DISADVANTAGES
1
Exporter is guaranteed to make a
profit because all costs are added
to the price.
1
Setting the price by adding the
desired profit margin plus all of the
costs causes the price to escalate
2
Exporter predetermines the profit
margin that makes sense for the
business.
2
The final export price maybe
uncompetitive in relation to similar
products sold in the export market
leading to low sales
3
Protects the business against
margin erosion
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TOP DOWN
The starting point is the price that the customer is willing to
pay in the export market for a similar good.
All the export costs are then worked back from that price to
determine the price at which the product should be sold in
order to be competitive in the export market.
The exporter then has to calculate the gross profit derived from
selling at that export price and determine if it is worth the effort
and investment relative to other export opportunities.
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TOP DOWN
ADVANTAGES
DISADVANTAGES
1
Pushes the exporter to do
1
comprehensive research into all the
costs associated with exporting the
product to the export market
Sometimes the required export
price does not allow the company
to make a big or any profit
2
Increases the likelihood of the
product being accepted in the
export market because the price is
competitive relative to similar
products
Any unaccounted for cost
components in the export price
build up model could result in
either an uncompetitive price or a
loss or profit margins
2
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INDIVIDUAL AND GROUP ASSIGNMENT
COST PLUS AND TOP DOWN
PRICING MODELS
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Factors to be considered in the
export price build up
INCOTERMS
Freight
Pallet or Container Configuration
Documents, Insurance, Inland Truckage
C
O
S
T
Duties, Customs and port charges at destination port
Trade or Payment Financing
Distributor, Wholesaler or Retailer Mark Up
Local Sales Taxes
Exchange Rate
Price of Competing Product in the export market
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SOME COMMON
EXPORT PRICING TACTICS
Penetration Pricing
Price Skimming
Tier Pricing
Loss Leader
Odd-Even
Price Bundling
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PENETRATION PRICING
Definition
Pricing technique of setting a relatively low initial entry price, usually
lower than the intended established price, to attract new customers.
Objective
• Encourage customers to switch to the new product because of the
lower price.
• Increase market share or sales volume.
• Products are priced low to gain speedy acceptance in the market
Application
• Support the launch of a new product,
• Works best when a product enters a market with relatively little
product differentiation and where demand is price elastic – so a lower
price than rival products is a competitive weapon.
• Sales volumes should be high, so distribution may be easier to obtain
Advantages
• Catching the competition off-guard / by surprise
• Encouraging word-of-mouth recommendation for the product because
of the attractive pricing (making promotion more effective)
• It forces the business to focus on minimizing unit costs right from the
start (productivity and efficiency are important)
• The low price can act as a barrier to entry to other potential
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competitors considering a similar strategy
PRICE SKIMMING
Definition
The practice of ‘price skimming’ involves charging a relatively
high price for a short time where a new, innovative, or muchimproved product is launched onto a market. Products are priced
high (Skimming) where the product is an innovation, unique in
the market, setup costs are high and demand is relatively
inelastic
Objective
• Skim” off customers who are willing to pay more to have the
product sooner; prices are lowered later when demand from
the “early adopters” falls.
Application
• Largely dependent on the inelasticity of demand for the
product either by the market as a whole, or by certain market
segments.
• Highly innovative product is launched, research and
development costs are likely to be high, as are the costs of
introducing the product to the market via promotion,
advertising etc.
• The buyer tends to be more ‘prestige’ conscious than price
conscious. where the quality differences between competing
brands is perceived to be large, or for offerings where such 69
differences are not easily judged,
PRICE SKIMMING
Advantages
• Allows for some return on the set-up costs
• By charging high prices initially, a company can build a high-quality
image for its product.
• Charging initial high prices allows the firm the luxury of reducing
them when the threat of competition arrives
• Effective strategy in segmenting the market.
• Where a product is distributed via dealers, the practice of priceskimming is very popular, since high prices for the supplier are
translated into high mark-ups for the dealer. An example of the
latter would be for the manufacturers of ‘designer-label’ clothing.
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TIER PRICING
Definition
Practice of selling a limited number of product lines each of
which is priced at a different, distinct price point. Each line sold
may represent a different level of quality or have marginal
differences in quality, features etc of the product
Objective
Easier for retailers to buy merchandise, predict profits, and attract
and market to specific segments.
Application
• Target customers employ price as a major decision criterion
• Prices must be far enough apart to induce differences in quality
perceptions between lines
• (2) price points should be further apart at higher prices
because it takes more of a change in price at higher levels to
induce perceptions of differences.
• Single product Companies
Advantages
• Simplifies consumer decision making.
• Consumers can pick a specific price point and make their
selection from merchandise available at that price.
• Manufacturer appeals to different consumer segments
• Allows companies to generate multiple revenue streams from
one product type
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TIER PRICING
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TIER PRICING
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DISCOUNT TIER PRICING
Definition
A tiered price list is offered to the importer.
The higher the volume purchased the greater the discount and
the lower the actual export price
Objective
To encourage customers to increase their purchase volumes
To add a level of predictability to the purchase orders for sales
forecasting and production planning
Application
Event Tickets
Relatively low value items
Limited range of products
Advantages
Importers perceive they have more control over their purchase
decisions
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LOSS LEADER
Definition
A product priced below cost-price in order to attract consumers
into a shop or online store.
Objective
The purpose of making a product a loss leader is to encourage
customers to make further purchases of profitable goods while
they are in the shop.
New customers may be attracted and existing customers may
become more loyal. So, using a loss leader can help drive
customer loyalty.
Examples
Razors and Refill Cartridges
Printers and Ink Cartridges
Dollar Menu
Advantages
Bring in new customers and bring back old customers
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Loss Leader
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ODD – EVEN Pricing
Definition
A form of what is called Psychological Pricing Policies where the
price is made up of a combination of an odd and even number
such as 1.99.
Objective
To influence the consumer’s purchase decision through subliminal
messages.
Application
Special Introductory Price such as 19.99.
Advantages
Consumers tend to perceive “odd prices” as being significantly
lower than they actually are, tending to round to the next lowest
monetary unit.
Lower pricing results in greater demand
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PRICE BUNDLING
Definition
Companies sell a package or set of goods or services for a lower
price than they would charge if the customer bought all of them
separately. Common examples include option packages on new
cars, value meals at restaurants and cable TV channel plans.
Objective
To appeal to multiple consumer segments
To increase sales of complementary items
Application
These groupings are often successful only if the consumer is given
the option of buying the same products separately.
Advantages
Pursuing a bundle pricing strategy allows you to increase your profit
by giving customers a discount.
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INDIVIDUAL ASSIGNMENTS
PRICING STRATEGY
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PARALLEL IMPORTS
Parallel imports often takes place when there is
differential pricing of the same product - either
brand-name or generic drugs - in different markets
(usually owing to local manufacturing costs or
market conditions).
If a private pharmaceutical company agrees to sell a
product at a lower price in low income countries, it
will need some assurance that the cheaper product
will not be imported back into its country markets,
undercutting its profits
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DUMPING
If a company exports a product at a price lower
than the price it normally charges in its own
home market, it is said to be “dumping” the
product.
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STRUCTURES FOR PRICE
DISCOUNTS
• The normally quoted price to foreign end-users is the list
price. This price is usually discounted for the
Producer/Exporter’s distribution network and some
important export end-users. There are several types of
discounts that can be offered, which are outlined in the
following: Quantity discount - offered to customers who purchase
in large quantities.
 Cumulative quantity discount - a discount that
increases as the cumulative quantity increases.
Cumulative discounts may be offered to re- sellers who
purchase large quantities over time but who do not wish,
or are not in a position, to place large individual orders.
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STRUCTURES FOR PRICE
DISCOUNTS
 Seasonal discount - based on the time that the purchase is
made and designed to reduce seasonal variation in sales e.g.
the tourism sector offers lower off-season rates at certain
times of year to minimize and stabilize the peaks/troughs in
their annual sales.
 Cash discount - extended to customers who pay their bill
before a specified date an encouragement to customers to
pay early and save some money, which also benefit the cashflow of the Producer/Exporter.
 Trade discount - a functional discount offered to distributors
for meeting or exceeding their agreed sales targets.
 Promotional discount - a short-term discounted price
offered to stimulate sales.
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TIPS FOR PREPARING
AN EXPORT PRICE LIST
• Always show the currency you are quoting or invoicing in.
• Sales Taxes such as VAT should not be included for export
sales. Ensure any mention of ‘VAT” included’ is removed if
using your domestic price list as a template, this confuses
buyers.
• When quoting Incoterms it is recommended to include the
year of the Incoterms.
• Include a validity date or period of the price list or
quotation
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TIPS FOR PREPARING
AN EXPORT PRICE LIST
• Include any minimum order quantities you may
require or quantity the pricing is based on.
• Item codes make it easier for buyers to place an
order and result in less confusion.
• Clearly show your company name, address
(including Trinidad) and contact details for placing
an order or enquiry
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TIP FOR PREPARING
AN EXPORT PRICE LIST
• Set a price that reflects your brand and promotion, but bear in mind
that an unknown brand from Trinidad may not be able to charge the
same prices as well-known competitors, particularly those inmarket.
• Before you start quoting prices to your customers, be sure to factor
in the promotional costs associated with supporting your products
in-market.
• You could create a problem for yourself if you quote a low price
initially in order to get business, and assume that your prices will
naturally increase over time. Buyers tend to expect the exact
opposite: that is, they expect to get a price reduction to reward
them for ongoing business, particularly if their orders increase in
size and volume.
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TIPS FOR PREPARING
AN EXPORT PRICE LIST
• It is important that you know your profit
margins and break even points; if you don’t
have this information readily at hand you will
not be able to make an informed decision if a
customer asks you for a discount.
• Discounts are a cost; before you offer a
discount to a customer reflect on the effect it
will have on your bottom-line.
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• Europe is a diverse market in terms of
languages, cultures, business practices,
consumer interests and needs. You need to
know when the “single market” idea applies,
and when you are better off adjusting your
approach according to regional or national
differences.
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Thank you
Michele Kalloo
International Business Consultant/
Director-International Business Development
MetrIQs Solutions Limited
Email: [email protected]
facebook.com/metriqssolutions
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Appendix
•
Halting the Discounter’s March
http://www.economist.com/news/business-and-finance/21639918
•
TARIC
http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/customs_tariff/index_en.htm
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