国际贸易实务(英文版)(第二版)ppt周瑞琪3.Export Price

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3.3 Calculation of price
Item Manufacturing cost + Export packaging (depending on mode of transport) + Profit margin – Discounts/rebates/volume discounts/sales commission = Selling price ex works (EXW) + Transport costs from plant to place of loading (train/truck) = Selling price free carrier (FCA) + Transport costs from place of loading to shipping port + Unloading at harbour + Transport insurance to shipping port = Selling price free alongside ship (FAS)
– Based on contract value/invoice value + – A markup (normally 10%) to cover incidental costs – Formula: I = CIF x (1+10%) x Premium Rate (R) • Therefore – CIF = CFR + CIF x (1+10%) x Premium Rate (R) or – CIF = CFR / (1 – 110% x R)
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3.3.3 CIF Price
• If FOB price is available
– CIF = FOB + Ocean Freight + Insurance Premium
• If CFR price is available
– CIF = CFR + Insurance Premium
• Calculation of Insurance Premium (I)
Sub-Total Total
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3.3 Calculation of price
= Selling price free on board (FOB) + Freight to port of destination = Selling price cost and freight (CFR) + Insurance = Selling price cost, insurance, freight (CIF) + Additional costs for full transport insurance = Price ex ship (DES) + Costs of import clearance + Unloading, THC + Costs for documents (ie delivery order) = Selling price delivered ex-quay (DEQ) + Land transport costs to nominated destination + Full transport to destination = Selling price delivered duty unpaid (DDU) + Costs of customs duty = Price delivered duty paid (DDP)
– Expressed in a fixed figure or in a percentage – Examples
• CFR London GBP100 per doz, including 2% commission • USD200 per M/T CIFC2% London • CIFC3 Hamburg USD100/set • CAD150 per M/T FOB Toronto, including CAD8 per M/T
• Other factors to be considered
– foreign exchange rates – international market price for similar products – policies and regulations in a particular market area
– The higher the capital income of the target market, the higher the price
• Payment terms
– The lower the financing charges, the higher the risk of payment
Chapter Three
Export Price
3.1 Expression of export price
• Four components in a standard format of a price:
– A code of currency: USD, CAD,CNY, EUR, GBP – A number indicating the price unit – A unit for measuring quantity: kg, gr, m/t, yd, set – A certain trade term: FOB, CFR, CIF
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3.3.4 Price including commission
• Net price = basic costs + profit
• Commission
– An incentive payment made to the middlepersons for their intermediary services
commission
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3.3.4 Price including commission
• Two ways of calculating commission
– based on invoice/contract value
• C = contract value x C rate
– CFR = FOB + Ocean Freight
• Ocean freight
– Provided by shipping lines – Quoted as packaged price – Others like “additionals” and “surcharges”
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• Examples:
– USD225.30/piece CIF New York – FOB Guangzhou EUR12.80/set
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3.2 Pricing considerations
• Cost
– Cost of production
• Direct cost: material costs, labour costs, allocation of fixed costs, packing costs, etc.
• Administrative costs: overhead
– Cost of sales
• Marketing costs: advertising, sales trip expenses, commissions intermediary services
– Cost of delivery
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Conversion of FOB, CFR & CIF Prices
• Conversion of FOB to other prices
– CFR = FOB + F – CIF = (FOB + F) / [1 – (1+markup) x R]
• Conversion of CFR to other prices
– in an absolute number – in a percentage → profit margin
• Capability of target market
– Referring to the consumption power, income level, supply and demand relationship
– FOB = CFR – F – CIF = CFR / [1 – (1+markup) x R]
• Conversion of CIF to other prices
– FOB = CIF x [1 – (1+markup) x R] – F – CFR = CIF x [1 – (1+markup) x R]
• Warehousing and transporting charge, insurance premium, taxes and tariffs, customs duties
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3.2wk.baidu.comPricing considerations
• Anticipated profit margin
Sub-Total
• FOB in freight currency
– FOB in freight currency = (Total Cost + Profit)/Exchange Rate
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3.3.2 CFR Price
• If FOB price is available
= price including C x (1- C rate) – Price including C (FOB/FCA) = net price / (1-C rate)
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3.3.5 Price with discount
• Discount
– a certain percent of price reduction, a special favor given by the exporter to the importer
+ Storage costs, terminal handling charge (THC), loading onto ship
+ Costs for export clearance + Commission of port agent
Table 3.1 Costing Worksheet
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3.3.1 FOB Price
FOB in local currency
Table 3.2 FOB Costing Worksheet
FOB
+ + + +
+ =
Free on Board Factory purchasing cost Profit margin Transport cost from plant to shipping port Transport insurance to shipping port (optional) Storage costs, terminal handling charge (THC), loading onto ship charge Export customs clearance cost FOB (Named port of shipment)
– based on FOB or FCA:
• Under such terms as CFR, CIF, C is calculated before F and I are deducted
• Formula:
– C = price including C (FOB/FCA) x C rate – Net price = price including C (FOB/FCA) – C
• Reasons for discounting:
– To increase market competitiveness – To get rid of stocked goods – As a motivator for B to introduce goods into new markets – As a compensation for settling disputes or previous orders