1、We Want to Maximize ProfitA1Your price is much higher than that of other competitors.sB1Thats true. Our product is of superior quality and the most important reason is that we want to maximize profit.sA2It seems to me this is not a correct idea. Setting the highest price for a product is not necessa
2、rily the realistic way to earn the highest profit, because a higher price usually results in few sales.sB2You appear to be an expert in this aspect.s棬A3Me? Im not an expert. But so far as I know, there are two basic techniques of pricing export products.sB3What are they?s?A4Well, the first technique
3、 is cost-plus pricing. It simply means to arrive at a selling price by adding expected profit to the cost of the product.sB4This is a common way of pricing. Whats the second one?s?A5When a firm has more production capacity than domestic market can absorb, it will export. The firm can spread all the
4、fixed costs over the home sales, what the firm has to do when pricing its export products is only to calculate the variable costs for producing the extra products. This is called marginal-cost pricing.sB5Whats the good part of this method?s?A6Well, it enables the exporter to price his products at lower prices so as to enter the foreign market.s
