Procedure of Export.pptVIP

Procedure of Export (I) Learning Objectives: Knowing the general procedure of export Negotiation, export contract making Key Terms in the export contract Price setting in the export contract Fulfillment of export contract The Procedure of Export 1.Market survey 2.Offer to an enquiry 3.Negotiation-to reach an agreement 4.Contract signing 5.Fulfillment of contract. 1. Business Negotiation Negotiation is a voluntary process where both parties amend their offer and counter offer, modify their expectations so as to come closer each other to get a satisfactory result or outcome, accepted by both parties. Negotiation is an essential part of each transaction. The negotiation often proceeds through four stages: Non-task sounding ( enquiry ) Task-related exchange of information Argument/negotiation and persuasion Negotiation, Concession and agreement Question Do you have any experience in bargain when you buy something? Do you know how to protect your offer in selling something? What is the most import thing to negotiate in a transaction? Price setting Shoes selling example: You start up your own business of shoes retail, You need to rent a house in a street and the relative expense are as follows: Calculate minimum shoes selling price of each pair Minimum price=BEP 1. 5580÷30=186 2. 186÷20=9.3 3. purchasing price is 100 Minimum selling price for each pair = 100+9.3=109.3 The price 109.3 is the point to break even. It is called Break even point (BEP) (盈亏平衡点 ) Loss and profit Loss=the selling price is less than the BEP Profit=the selling price is greater than BEP Calculate the monthly profit at the selling price 125 and 135 each pair. Calculate the lost amount at the selling price 105 each pair. Profit and loss calculation Profit 1: (125-109.3)×20(pairs)×30(days) =15.7× 600 = 9420/M Profit 2. (135-109.7) ×20 ×30 =25.7× 600 = 15420/M Loss: (105-109.3) ×20 ×30 = -4.3×600 = 2580/M Export price setting