Pricing strategy Creating a pricing strategy for exporting your goods and services is essential. The cost of the sale will set the lower limit for the export price. In turn, this will set the basis for the negotiation between the exporter and importer. A pricing strategy, like other aspects of the financial plan, will need to be flexible and fine-tuned according to the dynamics of the global market. Be prepared to do some research. Irrespective of whether you are importing or exporting, you need to be sure that your prices remain appealing after factoring in the costs associated with delivery to the country of destination, the packaging and the expense of any upfront travel. Together these costs are known as ‘on-costs’ and the total cost, including on-costs, is often referred to as the ‘fully loaded cost’ or ‘landed cost’. If you decide to export a product or service to a new market or to buy from a new supplier in a different country, you can’t take for granted that you will make a profit right away. A transaction may prove unprofitable if the cost of entering a market is too high, the competition is too challenging, or the price in the new market is not competitive. The small business guide to import and export 7