What gross profit margins and pricing strategies should we use for export sales, and how do we calculate ex-duty pricing for new markets like Australia?
Members recommend keeping export prices within a 15% variance of UK bonded/ex-works pricing as a baseline framework. Here's what the community shared:
**Export pricing approach:** - **15% variance rule** — Price ex-works export list price within 15% of your UK bonded pricing; this acts as an anchor point - **Domestic vs. export margin gap** — Export prices are typically lower than domestic to account for importer costs and avoid parallel trading concerns. Large brewers sometimes price higher to actively prevent parallel imports - **Ex-duty calculation** — Ex-duty pricing equals your cost of goods plus your desired markup; the importer/buyer then factors in transport, import duties, and their own margin. You don't need to include those costs in your quote - **Competitive benchmarking** — Ask the importer for pricing of competitor brands in their market; use those to guide your position - **Deals and A&P on top** — Any promotional support or marketing spend sits *above* the 15% variance band, not within it
**Key caveats:** Members emphasised that margins vary significantly based on individual cost structures and desired markups, so the 15% rule is a guideline rather than law. One member noted that larger brands sometimes price *higher* on export to prevent parallel imports, so category and channel strategy matter. For a first export (like Australia), asking the importer for comparables is especially important to avoid leaving money on the table or pricing yourself out.
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