Managing costs and drafting contracts

Guidance on great.gov.uk

Understand what to include in a contract

It’s important to draft a contract as soon as you’ve found a potential buyer for your product to make sure you have complete clarity on everything you agree.

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A contract is a specific type of agreement that, by its terms and elements, is legally binding and enforceable in a court of law. Every contract will be different and dependent on what you agree with the buyer. But there are certain elements you should always include.

Guidance on great.gov.uk

Understand international exporting terminology

Understanding the terminology of exporting can be difficult when you’re starting out as an exporter. But it's important you familiarise yourself with the language before you start any negotiations or paperwork.

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We have a glossary of common terms used when completing export documentation and contracts. If you're new to exporting you should consider using intermediaries, such as a freight forwarder, to help you complete any documentation correctly.

Guidance on great.gov.uk

Understand different Incoterms

Incoterms (international commercial terms) are an international shorthand system to make sure all your responsibilities, costs and associated risks of exporting products are clearly allocated, agreed and recorded.

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They're used worldwide, usually with a contract or other form of sales agreement for any goods you export – and they should be recorded on your export invoices. They are produced by the International Chamber of Commerce (ICC). Incoterms 2020 has 11 terms. Seven of these cover all forms of transport and 4 are for ocean freight.

Guidance on great.gov.uk

Get help negotiating a sale

You may need to negotiate on price when pitching for new business, especially if you’re selling your product through distribution partners, or as part of a tender process.

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How long this takes depends on many factors, such as the complexity of your market, volume of sales and how negotiations are handled culturally. If you’re negotiating the price of a single product through a distribution partner, it might be easy to agree. Whereas tendering for a large government contract may be a much longer process.