The relevant question is not simply whether a buyer likes the product. It is whether the proposed selling price can accommodate landed costs, channel compensation, local services and the supplier’s commercial objectives.
01 / 05
Start with a comparable offer
Identify products a real target customer would consider instead. Compare specification, delivery terms, warranty, technical service and purchase quantity. An imported brand premium should be justified by value, not assumed.
02 / 05
Build the landed-cost worksheet
Record export price, currency, shipping terms, freight, insurance where applicable, customs classification, estimated duties and taxes, customs brokerage, inland logistics and handling. Confirm product-specific tariff and import treatment with the responsible importer or specialist.
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Account for the channel
Different routes allocate commercial functions differently. Consider the cost of prospecting, customer support, distribution, promotion, samples, returns and payment collection. Avoid treating a distributor’s gross margin as the supplier’s profit.
04 / 05
Stress-test the assumptions
Calculate a base case and a downside case for exchange rate, freight, sales volume and discounting. Note which figures are verified quotations and which are planning estimates. A small change in sell-through or service cost can materially change the economics.
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Use the result to choose a test
If the price is credible, test it with a narrow set of qualified buyers. If the margin is inadequate, consider different positioning, product configuration, channel or timing. Do not hide a weak economic case behind optimistic market-size figures.
Questions this work should answer
- Buyer-facing price and comparison products.
- Documented export and shipping assumptions.
- Product-specific import charges and compliance costs.
- Channel, service and promotion economics.
Sources and further reading
External references support independent verification. Requirements differ by product and may change.