“The price is right” may be a phrase more closely associated with a midday Bob Barker game show than international trade. However, it’s crucial for professionals buying and selling their goods around the world to know what prices to set and accept in their transactions.
Setting the wrong price for your goods or services can wreck an otherwise excellent business, while providing the ideal prices for your target market can put you ahead of competitors as an industry leader.
To address this topic, FITT hosted a #TradeElite Twitter chat on Thursday, July 7. Here are some of the highlights, which can help you create or improve your very own international pricing strategy.
Moderator: Lucie Newcomb (@NewCommGlobal), CEO, The NewComm Global Group, Inc.
Panelists:
Sarah Barnes-Humphrey (@icecorplog), Director of Marketing & Strategic Sales, ICECORP Logistics
Lisa Hendrickson (@lisamax), Founder and CEO, SparkCity
Bruno Herrmann (@BHerrmann_INTL), Director, Digital Globalization, Nielsen
Ken Zwerdling (@FStaffing), CEO, Foreign Staffing
How has increased customer focus on transparency via the Internet affected your pricing?
A1 – we used to be hesitant about providing pricing information. Customers want to know what you charge – give it to them #tradeelite
— ★ Foreign Staffing ★ (@FStaffing) July 7, 2016
@NewCommGlobal @FITTNews with internet at our fingertips it has become easier for customers to have access to competing rates #TradeElite
— ICECORP Logistics (@icecorplog) July 7, 2016
#TradeElite A1 It changed the way local and international customers consider prices. They compare more often for the best service and value
— Bruno Herrmann (@BHerrmann_INTL) July 7, 2016
Which pricing strategies/methodologies do you use? Why?
culture context is key to correct #pricing from #market to market. #businessintelligence https://t.co/7fKljdM4WH
— Lisa Hendrickson (@lisamax) July 7, 2016
#TradeElite A2 The major non-negotiable factor is local experience. Pricing must make sense for customers. Too cheap or expensive kills it
— Bruno Herrmann (@BHerrmann_INTL) July 7, 2016
What was your biggest pricing lesson?
A3) Stick to your guns -think twice about lowering pricing just to get work – too much margin pressure much project unprofitable #tradeelite
— ★ Foreign Staffing ★ (@FStaffing) July 7, 2016
A3: DIMENSIONS. DIMENSIONS. DIMENSIONS! Be careful of restrictions for different modes of transport. #TradeElite
— ICECORP Logistics (@icecorplog) July 7, 2016
@FITTNews is brilliant in having products and services marketers on #TradeElite panels. This holds true for all. https://t.co/FGGcnxdZua
— Lucie Newcomb (@NewCommGlobal) July 7, 2016
The final question was about the specific context for pricing strategies:
Q4. Final: Price Conventions:We don’t think 2x about buying 2:1 cans of fruit but if a plastic surgeon offered that,yikes!Cases? #TradeElite
— Lucie Newcomb (@NewCommGlobal) July 7, 2016
Q4 it is perceived value. Someone in France may think your pricing is cheap-the same service in China will perceive as too much #tradeelite
— ★ Foreign Staffing ★ (@FStaffing) July 7, 2016
A4: confusing #commodity#product w/ a unique & #scarce 1 is a common #smallbiz mistake & the inexperienced #pricing#strategy#TradeElite
— Lisa Hendrickson (@lisamax) July 7, 2016
Read the rest of the chat and follow future discussions by following the #TradeElite hashtag.
Stay tuned for the next #TradeElite chat, coming up Thursday, August 4 from 2:30-3:30PM ET.
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