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Cost of the Shipment of Goods
Because the production of aircraft is based on supply chain management, the logistic activities should be carefully planned. Specific focus should be made on the delivery and shipment of spare parts (Goldstein, 2002). All these procedures also contribute to the expenses of shipment of goods.
Transportation Costs
Choosing Embraer Jet for transporting goods across Brazil can significantly reduce the transportation costs because the company can sustain a competitive advantage over other world-known brands, such as Boeing and Airbus.
Handling Expenses
Pier Charges
Pier charges should be gathers from shipments on domestic territories, as well as from foreign ships.
Wharfage fees
Warfare fees are also associated with the handling expenses. The aircraft company, therefore, should ensure that there are quays where shipment procedures could be carried out. Embraer Jets, therefore, must consider expenditures spent on reaching specific destinations within the specific terms. Such a strategy corresponds to the international standards that contribute to efficient expertise in cost management (Cateora & Graham, 2011).
Loading and Uploading Charges
Loading and unloading charges should be carried at specific locations with warehouses for storing goods. Therefore, it should also consider the costs the company undergoes while planning destinations and transportation of goods and passengers. Defining the most popular location is important.
Insurance Costs
Embraer Jets insurance presupposes that experienced agents invite underwriters who can establish favorable rates (Peng, 2009). Hence, Embraer aircraft can provide expert agents who will consider the most effective conditions and ensure the highest discount rates.
Customs Duties
Customs duties procedures should also be introduced to enhance protection mechanisms and improve the quality of goods transportation by Embraer Jets.
Important Taxes and Value-added Tax
The taxes should be imposed on imported goods.
Wholesale and Retail Markups and Discounts
The evidence proves that wholesale markups vary, but the average rates will amount to 20 % of the production costs. Discount types will be practiced during the flights to foreign locations, including the United States. Compensation deal is another type that should also be introduced.
Companys Gross Margins
Retail Price
Due to the fact that Brazil includes mostly large-scale retail outlets, including such stores as Walmart, it deals predominantly with small-business companies (Bell, Lal, & Salmon, 2011). In this respect, the purpose of airline services lies in establishing moderate prices for increasing amounts of retailed goods.
Methods of Payment
Cash in Advance
Cash in advance payments is not widely used. Therefore, the company will not accept this method of payment.
Open Accounts
An open account is the most efficient means of payment because it implies sales the possibility of using credits. Customers, therefore, should pay in advance to make use of aircraft services.
Consignment Sales
Consignment sales are appropriate to use when they concern goods transportation. In such a manner, the company can protect itself from possible risks of payment procedures. Consumers also use this type of payment to minimize the risk of injuries.
Sight, Times, or Date Drafts
Date draft provides customers with an opportunity to pay for the shipment on the fixed date of delivery. Such type of sales is beneficial for consumers and, therefore, it can increase demand for the proposed services.
Letters of Credit
Letters should be applied during foreign voyages, as well as transportation of exported goods. Moreover, the terms of payment are beneficial in terms of the document.
References
Bell, D., Lal, R. & Salmon, W. (2011). Globalization of retailing. The Global Market. Web.
Cateora, P. & Graham, J. (2011), International Marketing, US: Irwin McGraw.
Goldstein, A. (2002) From National Champion to Global Player: Explaining the Success of Embraer. UK: University of Oxford.
Peng, M. W. (2010). Global Business. New York: Cengage Learning.
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