China - Pricing China - Pricing
Most Chinese consumers are highly sensitive to price. Industrial and government procurement purchasing decisions are often focused primarily around price points and less around product and service quality. With carefully packaged service programs, however, Chinese industrial buyers can be convinced to pay a premium for higher quality products. Attractive export/import financing programs can also be an important tool for exporters. Refer to Chapter 7 for additional information on export financing assistance opportunities for U.S. companies.
Chinese consumers have demonstrated a willingness to pay a significantly higher price for products that provide a sense of prestige and sophistication. Simply carrying an imported label can often, though not always, be enough to put products into a premier price category. While a significant portion of such price differences is attributable to import duties and value-added tax, perceived higher quality and greater prestige of imported products has allowed importers to reap large profit margins. Refer to Chapter 5 for more information on duties and taxes.