Question

In: Accounting

Suggest different importer reactions to a price offer and how you, as an exporter, could respond...

Suggest different importer reactions to a price offer and how you, as an exporter, could respond to them.

Solutions

Expert Solution

The different reactions of an importer to a price offer and my response as a exporter is mentioned below:

Importer's reaction Exporter's response
When the price that is quoted is absolutely high, importer suggest the requirements to drop the price. The reason should be asked why he is thinking that the price is high and on which basis is he claiming such. The quality and positive points of the product must be focussed before one thinks of reducing the price.
If other exporters have been offering a offer in lower price. The exporter should get the details of all those offers and get to know whether they are actully low or there is any type of fraud. Moreover the importer should be made to understand that our product is anyway better than other exporters that is why we have a little high price.
If the importer is accepting the offer at the price at which it is initially set. Exporter should clearly calculate all the price associated with it and review the costs related to it, to understand if they would not incur any loss by selling at the set price to which importer is ready.
If the product is acceptable to the importer but wants the price to be lowered. The exporter should try convincing the importer that the price he will pay is fairly enough fir those products. He should made to be properly convinced before he refuses to make deal. If not understanding we can shift price to a little extent.
If importer is interested in one more product other than the one offered. Now here, the exporter should properly negotiate the price of other, as it is clear that importer is interested in that. And we can have a chance of making profit.

So, these were the situation where responses of exporter to importer reactions is being presented.


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