Home About Contact  
Export Assistance
Guides to Exporting
Finding Export Finance
EMIA
Export Consultants
Export Documentation
Register as an exporter
Proforma Invoice
Commercial Invoice
Letters of credit
UCP600
Packing Lists
Exchange Control Forms
Insurance Forms
Customs Documents
Document Completion Guide
Export Training
Training providers
Training calendar
Export Guide
Export Marketing
What is involved in export Marketing?
Export Marketing Channels
Using Export Agents
Finding Export Agents
The Role of Trade Fairs
Preparing to participate in a Trade Fair
Finding Trade Fairs
Inward Bound Missions
Outward Bound Missions
The Internet and Exporting
Website internationalisation
E-marketplaces
Export portals
Overseas Trade Missions
Embassies and Consulates
Financial Assistance for Export Marketing
ETO Systems
Dealing with Export Environments
Trade Agreements
Export Tools
Export Readiness Checker
Export Checklists
Export Business Planner
Export SWOT Analyser
Country Risk Evaluator
Trademap
Product map
Translation Resources
Currency Converter
Export Documentation
Document Completion Guide
SA and Foreign Tariff Databases
Export Software & Technology solutions
Tracking tools
Exporting & the internet
Export e-Newsletter
Export Law
Laws affecting Exports
Maritime Insurance
Exchange Control
SA Export Regulations
Trade/Maritime Lawyers
ITC Services
Trademap
Productmap

Step 13: Revising your export costings and price

You are here:Step 13: Revising your export costings and price >Revisit the costing exercise > Costing sheet framework


 

 

Costing sheet framework

 

A. Calculating an EX WORKS price

Start

Production costs
Raw material and component costs (including delivery charges)
R  
Labour costs
R  
Product adaptation costs
R  
Individual and sales packaging and labelling adaptation costs
R  
Factory overhead (including rates and taxes, lights and water, etc.)
R  
Administrative costs (including office administration, IT systems, insurance, etc.)
R  
Production finance charges
R  
Total cost of production   +R

add

Foreign research, promotion and sales costs
Travel and accommodation costs
R  
Research costs (desk and in-house research costs, including research agency costs)
R  
Communication costs (faxes, telephone calls, etc.) R  
Translation of advertising material, catalogues, etc. R  
Agency marketing costs and other professional fees R  
Total cost of foreign research, promotion and sales   +R

add

Preparation for shipping costs
Bulk packing, crating and labelling R  
Marking of crates and containers R  
Strapping or wrapping of crates and pallets R  
Documentation costs R  
Total shipping preparation costs   +R

equals

Total Ex Works cost of product =
R

add

Export financing costs and profit mark-up
Cost of financing R  
Export credit insurance R  
Discount of receivables R  
Currency conversion costs R  
Total export financing costs   +R
Profit margin

  +R

equals

QUOTE FOR EX WORKS PRICE
R

B. Calculating a FOB price

Start with

Total Ex Works cost of product
R

add

Inland freight costs
Freight forwarder's fees R  
Documentation costs R  
Factory loading costs R  
Local inland freight R  
Unloading charges R  
Storage charges R  
Wharfage costs R  
Total inland freight costs   +R

equals

Total FOB cost of product
R

add

Export financing costs and profit mark-up
Cost of financing R  
Export credit insurance R  
Discount of receivables R  
Currency conversion costs R  
Total export financing costs   +R
Profit margin   +R

equals

QUOTE FOR FOB PRICE
R

C. Calculating a C&F price

Start with

Total FOB cost of product
R

add

International freight costs
International freight/shipping charges R  
Total shipping costs   +R

equals

Total C&F cost of product
R

add

Export financing costs and profit mark-up
Cost of financing R  
Export credit insurance R  
Discount of receivables R  
Currency conversion costs R  
Total export financing costs   +R
Profit margin   +R

equals

QUOTE FOR C&F PRICE
R

Calculate a C&F price quotation

Start with

Total FOB cost of product
R

add

Marine Insurance costs
Shipping insurance coverage (usually 110% of value) R  
Total marine insurance costs   +R

add

Export financing costs and profit mark-up
Cost of financing R  
Export credit insurance R  
Discount of receivables R  
Currency conversion costs R  
Total export financing costs   +R
Profit margin   +R

 

QUOTE FOR CIF PRICE
R

 

Calculating a DDP price quotation

Start with

Total CIF cost of product = R

add

Customs costs
Customs duties R  
Custom clearance fees
R  
Total customs costs
  +R

add

Destination port handling costs
Unloading at receiving port R  
Broker fees R  
Storage costs R  
Total destination port handling costs   +R

add

Foreign inland freight costs
Loading charges R  
Inland transportation costs R  
Unloading at destination R  
Any additional transshipment costs R  
Freight forwarding fees R  
Total foreign inland freight costs   +R

add

Export financing costs and profit mark-up
Cost of financing R  
Export credit insurance R  
Discount of receivables R  
Currency conversion costs R  
Total export financing costs   +R
Profit margin   +R

 

QUOTE FOR DDP PRICE R

 

 
Top of page


next

Step 13: more information

Step 13: Revising your export costings and price
      Revisit the costing exercise
      Revisit your pricing strategy
      Marginal costing
      Consider the various cost reduction alternatives available to you
      Decide on a new export price

Click where you want to go

© Interactive Reality

More information on Step 13
Learning to export...
The export process in 21 easy steps
Step 1: Considering exporting
Step 2:Current business viability
Step 3:Export readiness
Step 4:Broad mission statement and initial budget
Step 5:Confirming management's commitment to exports
Step 6: Undertaking an initial SWOT analysis of the firm
Step 7:Selecting and researching potential countries abroad
Step 8: Preparing and implementing your export plan
Step 9: Obtaining financing for your exports
Step 10: Managing your export risk
Step 11: Promoting the firm and its products abroad
Step 12: Negotiating and quoting in exports
Step 13: Revising your export costings and price
Step 14: Obtaining the export order
Step 15: Producing the goods
Step 16: Handling the export logistics
Step 17: Export documentation
Step 18: Providing follow-up support
Step 19: Getting paid
Step 20: Reviewing and improving the export process
Step 21: Export Management
Export Reference
HS Codes
SIC Codes
TARIC Codes
Incoterms
Country Codes
Airline Codes
Airport Codes
Port Codes
Telephone Codes
Industry specific export control
Electricity Voltages
Transportation Types
Container Types
Hazardous Cargo Symbols
International Trade Agreements
Country Info
Export Documentation
E-marketplaces
Trading cycle
Export Articles
Export Glossary
Export Acronyms
Export Opportunities
Export portals
E-marketplaces
Export calendar
Inward Bound Missions
Outward Bound Missions
Trade Fairs SA
International Trade Fairs
Country Info
Country Help
SA Missions Abroad
Missions in SA
SA Representatives
Bilateral Chambers
Export Network
SA Economic Representatives
SA Missions Abroad
Missions in SA
Export Councils
Export Consultants
Export Trainers
Export Agents
Customs Clearing Agents
Trading Companies
Export Financiers
Chambers
Bilateral Chambers
Government Departments
Trade Associations
Freight Forwarders
Airline Companies
Shipping Lines
Road Haulers
Courier companies
Spoornet
Trade/Maritime Lawyers
World Trade Point Federation
South African Translators
Libraries
Universities with international Expertise
International Trade Statistics
Import and Export Statistics
Main Trading Partners
Main Export Products
Economic Statistics
SA Statistics
SA Reserve Bank
Trademap
Productmap
Data Mapper®
UNCTAD Statistics


SAinfo

     Our sister sites:

Indexing the World

CountryHelp

Trade Training

FreightForwarderHelp

CourierHelp

AssociationFinder

LearnTheNet

     Other useful links:

Freight & Logistics Gateway

Freight quotes