Micro, small and medium-sized enterprises (MSMEs) are being urged to calculate the full cost of getting their products into overseas markets before pursuing export opportunities.

Senior Export Facilitation Officer at Jamaica Promotions Corporation (JAMPRO), Jeanelle Brown, has said that failing to account for expenses beyond production could result in businesses entering markets where they are unable to make a profit.

“You have to consider the different factors that contribute to your profit margins at the end of the day, including the cost of making a product, having it exported and distributed, as well as marketing and promotion,” she said.

Ms. Brown was speaking during a Jamaica Business Development Corporation (JBDC) ‘Virtual Biz Zone’ webinar on August 11, which focused on export readiness.

She emphasised that pricing for overseas markets must form part of an entrepreneur’s export plan, with costs such as duties, taxes, shipping and marketing factored into the final price, as these will impact the profit margin.

Ms. Brown said entrepreneurs entering export markets for the first time should also obtain quotations from shipping companies to get a realistic indication of the cost of moving their products.

“Find out how much it costs to move a container or a carton to a market that you intend to send your products to,” the Senior Export Facilitation Officer advised.

Additionally, entrepreneurs were encouraged to conduct adequate research on their target markets and the prices of competing goods as well as examine products on shelves in their intended markets to determine whether they can compete profitably.

“Look on the shelves, see who the competition is and what they’re pricing their products for. From there, check to see if you can afford to do the same, and then decide if you can afford to position your product anywhere near those products,” she said.

To help reduce production costs, she urged MSMEs to investigate available government incentives. Among those highlighted was the Ministry of Industry, Investment and Commerce’s Productive Inputs Relief (PIR), which is available within Jamaica’s fiscal incentives framework for qualifying productive activities, including manufacturing and primary production.

The JBDC Virtual Biz Zone forms part of the Corporation’s efforts to equip MSMEs with practical business-development information to strengthen their competitiveness and prepare them for sustainable growth.