Section V- Pricin up, costs for exporting if applicable, margin and why this pri
ID: 1116407 • Letter: S
Question
Section V- Pricin up, costs for exporting if applicable, margin and why this pricing will work in the designated country's economy. This does not need to be detailed but should have some solid reasoning. .Factors in exporting affects the final product sales price to your buyer. Ihe buyer then has the option to further mock up the costs based on the end distribution channels. Also think from a personal and business perspective, every time a product or service goes through multiple channels, the costs increase.Explanation / Answer
The market of face mosteriser in Malaysia is monopolistically competitive in nature. There are multiple number of brands selling face mosterisers. However, few brands are there to sell 8 oz face mosterisers. Main competitors in the market are Now Foods, catephil, Renew and L'oreal Paris. These brands are recognised brands in Malaysia. In order to enter this market, economy pricing world be appropriate. After creating the brand awerness, company may raise price at the subsequent stages.
Among the brands, lowest price is charged by Now Foods that is RM 58.90 for 8 0z mosteriser products. Prices of other brands are comparatively higher.
Exchange rate $1 = 4.09 RM
1 ounce = 0.5 pound.
If it is assumed that 1000 units of products will be delivered at once, total weight = 0.5*1000 = 500 pound
Total shipping cost = $1815 for 5- 10 days delivery.
Assume Unit price of new products = $ 12
Total price with shipping cost = $1815/1000 + $12 = $18.15+ 12 = $ 30.15
In Malaysia, the markup price would be 30.15*4.09 = RM123.31
This price is lower than other product price such as Lóreal, Renew or Cetaphil.
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