国际经济与贸易英语:chapter 7Terms of Price.pptVIP

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国际经济与贸易英语:chapter 7Terms of Price.ppt

Chapter 7: Terms of Price Practice shows that price is simply an offer or an experiment to test the pulse of the market. If they reject it, the price usually will be changed quickly, or the product may even be withdrawn from the market. Pricing means a series of techniques related to a single product or a group of products. It is so important to marketing and the development of int’l trade that it has always been singled out as one of the key issues in practices. 7.1 Price Elements Cost Structure P133 Costs of production Selling and Delivery Costs Customs Duties Factor Considerations in Pricing P135 7.2 Pricing Methods Cost-based Pricing 成本定价法 Break-even Pricing 盈亏平衡定价法 Marginal Cost Pricing 边际成本定价法 7.3 Use of Commission and Discount If a price shown in the contract directly comes from the calculation of basic costs and profit, it is called a “net price”(or net price means that commission or discount is excluded from the export price). But occasionally traders have to make some adjustments to the net prices to achieve the goal of promoting sales. These adjustments include commission and discount. Commission refers to the money paid to an agent for his intermediary service. It may be included in the price. For example: “CIF Hamburg USD100 per metric ton including 3% commission (CIFC3 Hamburg USD100/MT)” The commission included in a price is called plain commission (明佣), otherwise it’s called secret commission (暗佣 ). Contract price with commission is called commission-included price(含佣价). The calculating formula is as follows: Commission=Commission–include Price x Commission rate 佣金 = 含佣价 x 佣金率 Net Price = Commission-included Price – Commission 净价 = 含佣价 – 佣金 Discount is a certain percent of price reduction, a special favor given by the exporter to the importer. There are different types of discount such as “quantity discount”, “cash discount” and “special discount” for some special purpose. Discount is also specified in the price

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