You are likely to have to do it all again
We have already said that it is unlikely that you will arrive at a competitive export price (or final selling price) the first time round. You may need to review your costs and find ways of cutting them. You may need to change your pricing strategy or reduce your channel length to reduce the mark-ups of intermediaries. You may need to review or redesign your product to reduce its production costs.
Click here to view cost reduction strategies and marginal costing.
Costing and price-setting is a recurring process
You may also find that you have to go through this process several times. You will almost always have to review your costs for each new client. For this reason you should become familiar with the costing and price-setting process. Do not hesitate to review your costs and try and keep them as recent as possible - don't forget the prices of your inputs and transportation costs are changing daily (as do exchange rates, inflation, duties, etc.). Costing and price setting should become (and will become) an integral part of your export process. We even suggest that you review your costs and prices in later step in the 21-step export process.