Agribusiness in a Global Environment Lesson 6
Lesson 6 Activity - Product Price


Okay, now you have thoroughly prepared for selling your product in the country of your choice. You know all about the customs of that country, your product is sure to be popular, and you have prepared an outstanding marketing campaign. Now all you have to do is actually sell the product!

When you traveled over, you established a beginning relationship with a local businessperson who is now ready to negotiate a sale. But how much should you charge for the product? You need to make a profit, but he/she won't pay if it's too expensive. Here is where your experience with the business customs of that country comes in handy. Use your knowledge to negotiate a sale price satisfactory to both you and your "partner".

Before you can agree on a price, you should prepare a worksheet that states the price for the product with various shipping options. Beginning with the cost of the product itself, figure in your profit, the packaging costs, palletizing costs, and any other fees that you will have to pay before the product is ready to leave the warehouse. This is your base price. Then, create a report itemizing the additional costs for each stage of transportation. This will give your partner the option of paying you to transport the product to him/her or paying it from that end. Finally, determine what terms of payment you would be willing to accept.

Once again, your favorite banker, Mr. U.C. Money, is asking for MORE documents. Prepare a short report for him giving the final arrangements you have decided upon. He will be handling your money transfer, so it pays to please him!

Worksheet


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