Exports pricing is an important and sometimes complex area. Setting export prices is complicated by the fact that:

• Prices and what customers are prepared to pay vary from market to market. 
• Distribution margins vary from market to market. 
• Differing levels of tariffs, duty and VAT affect end prices (especially where these discriminate against imported products).
• Foreign exchange fluctuations interfere with costs and margins.
• Exporting adds its own costs (e.g. delivery and tariffs) to the product. 
• A range of new terms or terminology complicates export terms and conditions.

Price is the value the potential buyers will put on a product when making a purchasing decision. Most buyers have an upper price limit in mind. This is conditioned by prevailing prices in a market and influenced by the attributes of product offers in relation to the buyer's need and the offerings of the competition.

When quoting a price to an overseas customer, be clear as to who is responsible for transport and transit insurance. Misunderstandings can be avoided if you use a range of trade terms with an internationally agreed interpretation. Not only do the terms determine the charges to be included in the invoice - they also establish the exact extent of the exporter's liability regarding transport, insurance, packaging etc.

The principal delivery terms used in export contracts are as follows:

CIF (Cost Insurance Freight) e.g. CIF Liverpool:

Under this term, the exporter quotes a price which includes the cost of the goods, the insurance and all freight charges up to the named port of destination. The exporter must arrange and pay for insurance and freight and include the cost of these in the invoice to the buyer.

C&F (Cost and Freight) e.g. C&F Liverpool:

Here the exporter quotes a price which includes the cost of the goods and their transportation to a named port of destination but excludes the cost of insurance. Insurance is the responsibility of the buyer in this case.

FOB (Free on Board) e.g. FOB Dublin:

The price quoted includes all charges incurred until goods have been put on board the carrying vessel. Responsibility for insurance and freight rests with the buyer.

FAS (Free Alongside Ship) e.g. FAS Dublin:

Here the quoted price includes delivery of the goods to a point on the quayside at the loading berth of the ship.

Generally speaking, you should quote your customer a CIF price, and buyers like to receive quotations in their own currency.