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Our question is that what kind of payment mode should be prefer to buyers if we are developing a new export business and how much can we maximum discount on our products.
Free Member, Joined :10/30/2004
No of Topics Posted : 5
Reply/Comments : 0
Dear Mr. Goyal
please find herebelow our answer to your questions
1- Payment method - For new export business and new potential buyers, I suggest payment by irrevocable, non transferable, non divisible and confirmed Documentary Letter of Credit, issued at a first class bank, payable at sight against full set of shipping documents. It is very important that LC be confirmed by a prime bank. (Beside this, you should try to get agreement on a percentage of value to be paid in advance, which is not always possible).
2- Pricing should cover a margin for discounts, to be between 5 to 10 percent of price quotation. Granting discounts higher than 10% may lead to missjudgement from buyer that you have been appliying excesive pricing which may not be consistent with the market and may show lack of consideration to buyer knowledge and expertise on the product.
Best regards
Serge Flores
LA COUPOLE LTD.
Free Member, Joined :08/29/2003
No of Topics Posted : 0
Reply/Comments : 1
Payment modes depend upon your knowledge of the buyer and how comfortable are you with the buyer. Usually letter of credit at sight is preferred. You can also send the documents through bank (DP shipment) if you know your buyer well and know that he will definitely pay.
Free Member, Joined :06/12/2002
No of Topics Posted : 0
Reply/Comments : 5
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