9.Terms of price1 国际商务英语 大学 ppt课件

1、Chapter 9,Terms of Price,9.1 Expression of export price,Four components in a standard format of a price: A code of currency: USD, CAD,CNY, EUR, GBP A number indicating the price unit A unit for measuring quantity: kg, gr, m/t, yd, set A certain trade term: FOB, CFR, CIF Examples: USD225.30/piece CIF

2、 New York FOB Guangzhou EUR12.80/set,9.1 Pricing elements,Cost Structure Cost of production Direct cost: material costs, labour costs, allocation of fixed costs, packing costs, etc. Administrative costs: overhead Selling and Delivery costs Fixed costs: salesmens salaries Variable costs: packaging, t

3、ransport, commissions, advertising and sales trip expense, insurance premium. Customs duties,9.1 Pricing considerations,Anticipated profit margin in an absolute number in a percentage profit margin Capability of target market Referring to the consumption power, income level, supply and demand relati

4、onship The higher the capital income of the target market, the higher the price Other factors to be considered foreign exchange rates international market price for similar products policies and regulations in a particular market area,9.2 Pricing Methods,Cost-based Pricing A basic cost figure An amo

5、unt to cover profit Other unassigned costs Target costing Target costing makes cost an input to the product development process, not an outcome of it. Japanese companies, Isuzu Motors, Sony Break-even Pricing BEP=Total Fixed Cost/Price of One unit-Variable Cost of One Unit Marginal Cost Pricing The

6、variable costs per unit of production Direct cost + variable overheads,9.3 Calculation of price,Table 9.1 Costing Worksheet,9.3 Calculation of price,9.3.1 FOB Price,Table 9.2 FOB Costing Worksheet,FOB in freight currency FOB in freight currency = (Total Cost + Profit)/Exchange Rate,FOB in local curr

7、ency,9.3.2 CFR Price,If FOB price is available CFR = FOB + Ocean Freight Ocean freight Provided by shipping lines Quoted as packaged price Others like “additionals” and “surcharges”,Conversion of FOB, CFR export revenue export cost, unprofitable,Understanding the price,Export cost for foreign exchan

8、ge (ECFFE) Interpreting profitability with currency factor Sanding for how many units of local currency the exporter should pay to make one unit of foreign currency Formula as follows:,Note: The less the ECFFE is, the more profit the exporter can make,Illustration 4,X company signed a contract to ex

9、port 1000 of USD20 per unit CIF New York. The total amount is USD 20000, including freight USD3000 and Premium USD200. The total purchase price is CNY100000, cost before export is 10% of the purchase price. The present foreign exchange rate of USD against CNY is 7. Q: What is the export profit margi

10、n and export cost for foreign exchange? Solution: Export revenue in USD = USD(20000-3000-120) = USD16800 Export revenue in CNY = 16800 x 7 = CNY117600 Export cost in CNY = 100000 + 100000 x10% = CNY110000 Export profit margin = (117600-110000)/117600 x 100% = 6.46% ECFFE = CNY110000 / USD16800= 6.54

11、8,Wording of Prices in Contract,HKD 100 per doz EXW GUANGZHOU (5 Beijing Road) CAD 200 per gr FCA Toronto (Airport) EUR 150 per pr FOB Shanghai JPY 600 per lb FAS Tokyo AUD 120 per pc CFR Sydney CHF 300 per set Carriage Paid To 5 Maple Rd. Geneva (sea/air shipment: from Guangzhou to Dubai by sea, th

12、en by air to Geneva) USD 250 per set Delivered at Sino-Mongolian Frontier (Erlian) EUR 350 per M/T DES Guangzhou GBP 500 per unit DEQ London,Term translation,Cost structure 成本構成 Cost of production成產成本 Profit margin邊際利潤 Selling cost銷售成本 Target costing目標成本法 Everyday low pricing每日宝宝湿疹低價 Total fixed cos

13、t總固定成本 Variable cost變動成本 Skimming price strategy撇脂定價戰略 Penetration strategy滲透定價戰略 Floating exchange risk浮動匯率風險,Term translation,成本導向定價法pricing based on cost 盈虧平衡定價法 break-even pricing 邊際成本定價法 marginal cost pricing 損益兩平點 break-even point 計價貨幣 money of account 支付貨幣 money of payment 硬貨幣 hard currency 軟

14、貨幣 soft currency 匯率宝宝湿疹怎么治疗exchange rate 價款調整 price adjustment 傭金折扣 commission/ discount,COUNTRY CURRENCY Britain GBP pound sterling Japan JPY Japanese Yen France FRF French Franc Australia AUD Australian Dollar China CNY Chinese Yuan Burma BUK Burmese Kyat Singapore SGD Singapore Dollar New Zealand NZD New Zea