IM.5:International Market-Based Pricing (see Figure 23)

Analysis
Product
Running Shoe
Metric
International
Market
Manufacturers' Cost  
$15.00
$
Manufacturers' Margin
$15.00
$15.00
Manufacturer's Price
30
Company Manged (Transportation & Insurance)
25
%
$15.00
Export Agent
0
%
$15.00
Landed Cost (CIF Value)  
30.41
Tariff (20% on CIF Value)
20.00
%
$15.00
Importers Cost (CIF)  
36.49
Importers Margin (15% on cost)
15.00
%
$15.00
Value Added Tax (15% on cost plus margin)
15.00
0.00
Importer Price (Wholsaler's Cost)
Wholesaler Margin (25% on cost)
25.00
%
$0.00
Value Added Tax on Wholesaler Margin (15%)
15.00
$0.00
Retailers Cost
$62.13
Retailer Margin (% markup on cost)
67.00
%
$0.00
Value Added Tax on Retailer Margin (%)
15.00
$0.00
Consumer Price
$110.00
$
Percent Over Domestic Price
15
%
 
Starting Data
Consumer
Price
Consumer
Volume
Company
Price
Company
Sales
Company
Margin
Gross
Margin
$140.00
$
10.00
$30.96
$
$0.00
$0.00
$0.00
$130.00
$
17.00
$28.75
$
$0.00
$0.00
$0.00
$120.00
$
25.00
$26.54
$
$0.00
$0.00
$0.00
$110.00
$
35.00
$24.33
$
$0.00
$0.00
$0.00
$100.00
$
45.00
$22.11
$
$0.00
$0.00
$0.00
$90.00
$
55.00
$19.90
$
$0.00
$0.00
$0.00
$80.00
$
65.00
$17.69
$
$0.00
$0.00
$0.00
$70.00
$
75.00
$15.48
$
$0.00
$0.00
$0.00

Instruction:

  1. Change consumer volume based on analysis
  2. For each level of consumer price estimate the company the Analysis: Market-Based Pricing

Starting Data
Product
Running Shoe

Metric
International
Market
Manufacturers' Cost  
$15.00
$
Manufacturers' Margin
$15.00
$15.00
Manufacturer's Price
30
Company Manged (Transportation & Insurance)
25
%
$15.00
Export Agent
0
%
$15.00
Landed Cost (CIF Value)  
30.41
Tariff (20% on CIF Value)
20.00
%
$15.00
Importers Cost (CIF)  
36.49
Importers Margin (15% on cost)
15.00
%
$15.00
Value Added Tax (15% on cost plus margin)
15.00
0.00
Importer Price (Wholsaler's Cost)
Wholesaler Margin (25% on cost)
25.00
%
$0.00
Value Added Tax on Wholesaler Margin (15%)
15.00
$0.00
Retailers Cost
$62.13
Retailer Margin (% markup on cost)
67.00
%
$0.00
Value Added Tax on Retailer Margin (%)
15.00
$0.00
Consumer Price
$110.00
$
Percent Over Domestic Price
15
%
 
Starting Data
Consumer
Price
Consumer
Volume
Company
Price
Company
Sales
Company
Margin
Gross
Margin
$140.00
$
10.00
$30.96
$
$0.00
$0.00
$0.00
$130.00
$
17.00
$28.75
$
$0.00
$0.00
$0.00
$120.00
$
25.00
$26.54
$
$0.00
$0.00
$0.00
$110.00
$
35.00
$24.33
$
$0.00
$0.00
$0.00
$100.00
$
45.00
$22.11
$
$0.00
$0.00
$0.00
$90.00
$
55.00
$19.90
$
$0.00
$0.00
$0.00
$80.00
$
65.00
$17.69
$
$0.00
$0.00
$0.00
$70.00
$
75.00
$15.48
$
$0.00
$0.00
$0.00

Instruction:

  1. Change consumer volume based on input data
  2. For each level of consumer price estimate the company price using the Starting Data : Market-Based Pricing

Comments: