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Definitions of Terms The terms you use will be contingent upon many of the factors you have previously reviewed.

When choosing terms you will want to consider the relationship you have with the buyer and the economic and political climate of the exporting country.

Once you decide your target location, you will want to find out what affects its market demand as that relates to your product.

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Some Things to Find Out The Market's Ability to Pay Consumer Needs and Desires Competition How to Investigate Market Demand Pricing For International Sales Your Company’s Foreign Market Objectives Pricing Methods: Cost-Plus vs Marginal Cost Pricing Options What Are Your Product’s Costs?

Be a Good Cost Shopper: How To Shrink Costs Cost-Saving Strategies on Freight Gaining Incremental Sales Selling Excess or Obsolete Inventory Building a Newtork of Distributors Terms of Sale Why are Terms of Sale Necessary?

Preparing Price Quotations An export transaction starts with a price quotation on your product.

Potential international customers will request such a quote from you and will consider it legally-binding.

It was also mentioned that before you can begin your campaign, you must be able to quote a competitive price on your product.

Costs, fixed and variable, need to be calculated within that price.

The table below defines the most widely used terms.

NOTE: This listing is meant only as a brief introduction to terms.

Definitions of Terms Preparing a Proforma Invoice Sample Pro Forma Invoice Pro Forma Invoice Definitions Shipping Logistics Costs Freight Forwarders Roles of the Freight Forwarder Do You Need a Freight Forwarder?

Finding a Freight Forwarder Choosing a Freight Forwarder This section provides information about pricing for international sales, choosing the terms of sale, preparing the Pro Forma invoice, choosing terms of sale (normally known as "shipping terms") and setting payment terms.

Incidental charges of Freight, Insurance, and Handling include: Clarifying the terms of credit up front will save you pressures later. You also may consider adding contingency insurance in case your buyer's coverage is inadequate or non-existent. By having distributors and agents in your target market, you are more apt to achieve long-term growth and market penetration.