FREE 10+ Import and Export Price Index Samples in PDF | MS Word

When selling commodities, you need to consider several factors to determine its price. Production cost analysis is just a small chunk of the whole process of pricing, especially if you operate within the import and export industry. You have to account for market trends, such as the import and export price index, which we are going to tackle in this article. Additionally, we have included a set of examples that you can use in expanding your knowledge about this business tool.

Import and Export Price Index Definition

Trading is the basis of today’s global economy, making it crucial to periodically gather data, such as the prices of exports. Exports are the products produced by a country and sold abroad that people buy. Another essential data to gather is the prices of the imports, which are the products that are brought into a country for selling purposes. With this set of data, the authorities from the United States’ Bureau of Labor Statistics generate the import and export price index, which they release every month.

Through the import and export price index, people in business can monitor and analyze the price trends, along with other essential data, such as the consumer price index and wholesale price index. This enables them to determine the price of the goods they are going to sell and negotiate trade contracts. It also allows the authorities to forecast future inflation, making it easier for them to come up with an action plan to deflate the value of imports and exports. Additionally, import and export price index data also allows the authorities to measure exchange rates and decide which monetary policy is appropriate to implement.

Weaknesses of the Import and Export Price Index

Despite its advantages, you should also consider that this tool comes with limitations. A North Carolina State Economics professor, Walter J. Wendells, believes that the data analysis conducted for this information sometimes does not cover the quality changes of the products. This means that they may determine future inflation without assessing the quality of the product. He also believes that this index fails to indicate its consumption patterns. For example, if the demand for a particular product increases, its price may increase as well. As a result, consumers may lower their purchase of these goods.

10+ Import and Export Price Index Samples in PDF | DOC

According to Global Edge’s trade statistics, South Korea currently ranks fourth as a global exporter—with a 44.01% gross domestic product(GDP). It surpasses its goods and services imports, with a 38.9% GDP. To better understand how to read an import and export price index, let’s go over the following examples. You may also download these sample documents in PDF and M.S. Word formats.

1. Import and Export Price Index Sample

2. Import and Export Price Index Template

3. Import and Export Price Index Data Sample

4. U.S Import and Export Price Index Sample

5. Import and Export Price Index Example

6. Formal Import and Export Price Index Sample

 

7. U.S Import and Export Price Index Template

8. General Import and Export Price Index Sample

9. Basic Import and Export Price Index Template

10. Simple Import and Export Price Index in PDF

11. Import and Export Price Index in DOC

How to Set the Price of Your Product in the Import and Export Market

By following the steps below, you will know how to apply your knowledge about the import and export price index.

1. Consider the Costs

Whether you are importing or exporting goods, you need to calculate all the costs involved in getting the products to your customers when deciding on its price. These costs may include the distribution channel and production costs. Also, keep in mind that these costs will be your fundamental basis in setting the price of your products.

2. Level Up Your Game

If you are up to gain more profit or sales in a competitive market, think ahead. Invest in providing excellent customer service. By doing so, you can address their concerns and provide them with the best products or services, ensuring that they will leave your store with great satisfaction. However, note that incorporating this into your business strategy can be expensive. Thus, you have to include it in your cost analysis.

3. Use the Import and Export Price Index

Aside from the import and export price index, you can also make use of other product index tools such as the consumer price index, wholesale price index, and farm price index. Using these tools will complement the information you have at hand. Furthermore, these tools have distinct characteristics that focus on particular factors, allowing you to balance the price you are going to assign to your products.

4. Test Your Product Pricing

US import and export price index or any scientific diagrams that contain statistical data may not be enough to determine the best price for your products.  It is not an guarantee that you will reach the number of sales you intend to accomplish. For this reason, it will be a big help if you will conduct a product pricing test. By doing it, you will know how the customers feel with the pricing that you initially implemented. It will also allow you to try different prices until you determine the most effective price for every product.

Using the import and export price index is indeed a great help to maximize the profit that your company can generate. Aside from that, it plays a vital role in maintaining the balance of the global economy. However, you should also know that analyzing this price index is just a part of a massive scope of business strategy. Therefore, it will be a big help if you will find a way to simplify this essential part. You can continue learning by reading our article about product pricing calculator templates.