Export pricing and payments: 12 questions answered.
How to price for export and get paid safely. Every answer stands alone, so jump to the one you need.
Export pricing, payments and currency
How to price for export and get paid safely.
What is an export price list?
An export price list quotes prices on a stated Incoterm, in a stated currency, with export case packs and minimums that suit the freight. It reflects landed cost for the destination, not only the domestic wholesale price.
How do international buyers usually pay?
Common options are payment in advance, a letter of credit and open account terms for established relationships. New buyers in a new market often start with payment in advance or a letter of credit. Never ship on credit to a buyer you have not checked.
What is a letter of credit?
A letter of credit is a bank's promise to pay the seller once the seller presents the required documents. It lowers non-payment risk, but it is strict, and a small mismatch in documents can delay payment. Work with your bank.
What is a pro forma invoice?
A pro forma invoice is a preliminary invoice listing goods, quantities, prices, terms and shipping details before shipment. Buyers use it to arrange payment, import permits or a letter of credit.
What currency should I quote in?
Quoting in U.S. dollars keeps your risk low and your price list simple. Quoting in the buyer's currency can win trust but exposes you to exchange-rate swings, so build a margin for movement if you do.
How do I check that a foreign buyer is real?
Verify the company's registration, website and address, ask for trade and bank references, and screen it against government restricted-party lists. Do not ship until the agreed payment condition is met.
What are duties and who pays them?
Duties are taxes charged by the importing country, set by product classification and origin. Your Incoterm decides who pays: under EXW, FOB or CIF the buyer pays import duties, and under DDP the seller does.
How do I find the duty rate for my product?
Classify the product with an HS code, then look that code up in the destination country's customs tariff. Many governments publish searchable tariff databases, and a customs broker can confirm the rate.
What is trade credit insurance?
Trade credit insurance protects a seller against a buyer's non-payment. Ask an insurance broker about coverage, costs and conditions before offering open account terms to overseas customers.
How do tariffs and trade policy changes affect export pricing?
Tariff and trade-policy changes can alter landed cost with little notice. Build a cost model you can update, add a buffer to quotes and include a price-adjustment clause in your terms if lead times are long.
What is a landed cost model?
A landed cost model adds the factory price, freight, insurance, duties, taxes, broker and port charges and local delivery, then divides by units. Update it whenever a quote or rate changes.
Should export prices differ from domestic prices?
Usually yes. Freight, duties, distributor margin and local competition change what a market will bear. Build each market's price from landed cost and the shelf price there.
More export answers
Related: Market research
Statements about OutsourcedExport come from this site's solutions, services and industries pages. Everything else is general export guidance. Duties, thresholds and filing rules change, so confirm them with the official agency or a licensed specialist. Nothing here is legal advice.
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