International Pricing

Companies that market their products internationally have to decide what prices to charge in the several countries in which they operate. In some of cases, a company may set a uniform worldwide price. The price that a company should charge in a particular country depends on various factors, by including competitive situations, economic conditions, laws and regulations, and development of the retailing and wholesaling system. Consumer perceptions and preferences also can vary from country to country, calling for different prices. Or the company can have different type of marketing objectives in many world markets, which need changes in pricing strategy. Costs play significant role in setting international prices. Travellers abroad are frequently surprised to discover that goods that are relatively inexpensive at home can carry disgracefully higher price tags in other countries. In some of the cases, such price escalation can result from differences in selling strategies or market conditions. In most of the instances, however, it is easily a result of the higher costs of selling in foreign markets-the extra costs of modify the product, higher shipping and insurance costs, import taxes and tariffs, costs attached with exchange-rate fluctuations, and physical distribution costs and higher channel.