What's It Worth?

One of the most difficult aspects of taking your business international is pricing products. According to Marcia Youel Smith, president of Reston, Virginia-based Columbia Cascade Inc., which produces software used by associations, educators and government agencies to calculate export pricing, international pricing is a two-step process.

First, find a base price that takes into account the additional expenses you incur just by crossing borders. These include:

• international market research;

• export distribution fees and sales commissions;

• international advertising and marketing;

• translation;

• product modifications to comply with international standards;

• packaging that meets export requirements;

• and export consulting, accounting and legal fees.

Then, once you have a specific international customer to quote for, you have to consider the costs particular to getting your goods to that company, such as:

• shipping and handling (packing, marking, labeling, consolidating and containerizing);

• preparing export documents, certifications and licenses;

• compiling export shipment documents;

• insurance certifications and policies;

• dangerous/hazardous materials declarations and certifications;

• and freight-forwarder, consignee, customhouse-broker and/or consulate fees.

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"Pricing can be a confusing task," Smith concedes, "but you get better at it once you're familiar with all the factors."

Christopher D. Lancette is an Atlanta-area freelance journalist who covers international business fora variety of local, national and international publications.

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