Pricing in international markets

Market positioning of product or service via price in the target market, e.g. high price to signal high value and exclusivity
Membership of tariff union such as the European Union: check all aspects of rules surrounding products or services originating in the union versus those imported from outside the union.
Prices already operating in home country where relevant
Currency exchange rates with other countries, both actual and potential
Costs of tariff and other barriers
Any variation in local taxes, including value added tax
Prices of similar products already available in the target country
Trade discounts and other special deals already operating in the target country, e.g. regular discounts off the manufacturer’s list price for reaching volume targets
Distributor markup already operating in the target country, i.e. the difference between the distributor’s price and the customer’s price
For multinationals, the prices at which goods are transferred between subsidiaries – called ‘transfer pricing.’
Availability of web-based selling structures and distributors both to reduce selling costs and to promote goods
Possibility of parallel trade pricing, i.e. goods imported from low-tax country into parallel country with higher taxes
Reaction of current competitors via price to new entrants.

Global Strategy