Top 8 factors affecting on pricing in the international market | Global Pricing Strategies

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Selling product internationally requires understanding different factors that may have an impact on how the company set the price. The numerous factors that affect pricing decisions are briefly summarized as follows:

Cost – is the main factor that affects pricing decision. A firm should take into consideration direct cost such as raw materials and indirect cost such as distribution overhead in order to achieve more accurate profit calculations.

Competition- competing in international market is much more challenging than in the local market, because the exporters have to compete with foreign firms that manufacture under different regulations and market environment. Additionally, competing in developed countries is much harder due to the established advantages by local companies.

Attitude Towards Countries’ Products – consumers in the international market often develop negative perception against imported goods from the developing countries. Usually products from developed nations possess higher prices than products from developing nations.

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Top 8 factors affecting on pricing in the international market – Global Pricing Strategies.