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- Pricing
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- The acceptance of your product in the Japanese market is
- based primarily on its quality and after-sales service, not
- its price. However, pricing analysis is a critical aspect
- of marketing in Japan for your company. Markups at the
- various levels of the Japanese distribution system have
- caused some imported items to be priced at levels which are
- noncompetitive with Japanese domestic products, even though
- the landed price of the imported product was comparable.
- Prices of competitive Japanese products can usually be
- taken as a starting point for tracing back through
- distribution channels the appropriate margins for each link
- in the chain. You should carefully examine the margins
- which are provided by both the domestic and foreign
- competition and compare the cost of establishing your own
- channels. Negotiations with a prospective agent should be
- conducted to determine a realistic selling price which
- would include reasonable and acceptable markups. Your
- company should also attempt to eliminate from its export
- price all purely domestic costs involved in marketing the
- product in the United States.
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