In the present I will try to take an administrative look at the construction of the sale price of an export, taking into account the factors and concepts to be applied regardless of the incoterm defined in the negotiation since the profit desired by the SME entrepreneur will be included there and applied to the part of costs and general expenses, that is, the part that some entrepreneurs import will be taken into account to add to their finished product as an additional cost and include it in the export sales price. To determine in this way a sale price in a simple but effective way when going out to sell products in international markets.
Now that Colombia is entering a global economic crisis in our country, although it has not been hit with the force felt by other countries today, we have to be attentive to global and national economic changes since every day the most sensitive factor in an economy It is employment and therefore companies must not neglect their broadest potential, which is knowledge and this is in the hands of their collaborators or human talent, so exporting has been and will be the option par excellence for companies stay afloat and with income that ensures their permanence in the market, with healthy cash flows, low indebtedness and constant growth, because the only way to grow is by exporting.
In this particular case, the sale price will not include the EXWORK Incoterm because, due to personal belief, this is not an export but a local sale and the only difference is that the product goes abroad but the Colombian businessmen do not intervene in any part of the country. then the export process could hardly be called an exporter but an international seller.
Then it will be taken into account in this export price since the entrepreneur acquires an input or part of the imported product and adds it to the finished export product, adding the other concepts that are imposed in the export until reaching the wording of this article. It has been called "cost of the product prepared for export", from there its utility and the other terms in a global way to determine why this approach is a clear, simple and functional proposal for an SME entrepreneur.
Determination
1. Initially, the employer must fully and unitarily pay for its importation, importation of that input added to the export product. Because input and not raw material, because the raw material participates with a very high percentage of the total costs of the exportable product and then it cannot be considered a Colombian product, therefore it would not be exportable.
The import cost must include all the concepts involved in this process to have a well-priced input ready to be added to an exportable product.
2. Once the aforementioned is clearly defined, proceed to start with the exportable product. This work can determine the first concept in two ways: a) The product is produced in its own plants, the person responsible for giving the unit cost will be the production of that product where concepts such as direct labor, direct materials, indirect labor, indirect materials and indirect manufacturing costs (cif) will be included, including the cost of the imported input and added to the exportable product, but will not be included the export preparation processes, and these fall on the professional in charge of the international area. b) The product is made by third parties or satellite plants, which is a very common operation today in the environment,The imported input will be delivered there to be added to the exportable product, generally this input represents an additional step in the process carried out by the satellite, so the cost of this additional process must be negotiated and its value agreed in advance or is simply a normal step in the product development process, so the cost of the satellite must remain intact.
3. In the third instance, the professional of the area must pay for the packaging of the product because the international packaging must comply with special characteristics that respond to the country where the product is shipped, the form of the packaging itself, its resistance depending on the type of sea transport air, land or multimodal, the printing and text that the packaging must have, the language, without losing sight of the marketing support that will have previously determined the presentation of the product to the final consumer, this is how this function must be paid for in the following way:
The price of international packaging delivered by the manufacturing company that meets the requirements and required qualities.
The labor involved in the packing process, taking into account the number of units to pack, the time per unit packed, the social benefits and parafiscal contributions to which the worker is entitled because this work and the others except for marking They must be carried out within the company due to the sensitivity of the operation.
4. Immediately proceed to perform the unification of the stowage, a process that previously had to undergo a study of accommodation of boxes, packages, etc. on the stowage to determine the best and most optimal way to distribute the merchandise based on the stowage and high taking into account the weight restrictions of the stowage and the container to be maritime or land and product restrictions, this process is determine the cost of the operator's time plus his social benefits and parafiscal contributions by unifying each stowage.
5. The next process is that of palletizing or packing, which is simply giving the required protection to the merchandise and stowage for its behavior during the national routes to port, airport or border and the freight that is the international route defined by the Incoterm. negotiated. Process that is financed in the same way as the previous one, that is, by stowage and is determined by the cost of the operator's time plus his legal benefits and parafiscal contributions that it takes to pack each stowage.
6. Subsequently and independently but not consecutively, the cost of marking the box must be taken, an operation carried out by a third party where the box, package, etc. is purchased for the specific export product and must additionally include the Basic information defined by the owner of the product in each box, the pictorial symbols required for the perfect handling of the product internationally, determination of each symbol in particular by the foreign trade or export area of a company.
The cost will be determined by the manufacturer of the box (other than the packaging) plus the basic information of the product and the pictorial symbols to which it is located.
7. Last and not least will be the handling of the merchandise within the company, which consists of the movements that the merchandise receives when carrying out all the aforementioned processes and up to the filling of the truck or container according to product and destination. The manipulation can be done in two ways: manual and mechanical - manual, which is when the forklift intervenes and this is the property of the company because if it is hired by third parties, it will be an expense. The process may then be paid for, including the time invested by the operator or operators moving the manual merchandise or by forklifts, calculated on their salaries plus social benefits and parafiscal contributions,In addition, a constant value should be estimated for the wear and tear of the forklift (not to repair shocks or serious damage since the company's insurance will be used there), so that when the forklift requires an oil change, preventive maintenance, the necessary reserves to carry them out and lastly the cost for fuel consumption that was used for the handling of the merchandise subject to export.
8. With the above processes clearly defined, paid for and added together, there will then be a product prepared for export, but this product remains in the plant within the required truck or container.
9. It is the moment to include the costs and general expenses of the company prorated by line (s) or product (s) that the company has for export, because administratively the apportionment is a tool that allows to distribute unique values in different concepts throwing like general information a distribution of 100% in the different concepts but not in equal parts, but by participation over the total.
10. Once prorated, the exportable product (s) will be applied to the product (s) according to its participation in the total costs and general expenses of the company.
11. Now, the sum of all the concepts involved, the cost of the product prepared for export plus (+) the costs and general expenses, will give the total where the desired utility can be applied by the businessman for the products or lines with capacity of being exported.
12. Applied then the desired profit to this sum will have the total sale price that divided by the number of exportable segmented units will give the unit sale price, regardless of the incoterm in which it was negotiated (except EXWORK).
13. The other concepts that are involved in an export such as Container Rental, Purchase of Pallets, Land Transportation, etc. They will be transferred to the international buyer but at the exact price valued by the other players in the export process, without this implying a higher value for these services.
14. Because if we set the export price at the end of the process, there will be a price that will have made the services of third parties more expensive and therefore a higher export price that can take the exporter out of the international market.
The appraisals presented here are solely the responsibility of the writer, since they come from a teaching and business experience of more than 15 years. They may not correspond to the appreciations of other actors in international business, but that is why it is an Administrative and very personal Look aimed at SME entrepreneurs, Teachers and Students of this wide world of international business, but it is sure that it is a contribution for your decision making.
