How to calculate export costing?

Secrets of International Trading
"...make a product price more attractive
to foreign buyer, by quoting FOB
price and a named foreign port or city..."

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Summary of Export Price Costing

Here are some basic example of how costing can be done in local Malaysian currency and thereafter, can be easily converted to foreign currency for export pricing of product.

1.- Determine Product Cost -in your local currency
2.- Determine Factory Sales Price - in your local currency
3.- Determine Shipping Cost - in your local currency
4.- Total the above costing and convert into foreign current to
arrive at your export price in foreign currency

1. Determine the cost of your product by:

a. Materials Cost ............................... = RM ?

b. Labor Cost ..................................... = RM ?

c. Factory overhead ........................ = RM ?

d. Administration Cost...................... = RM ?

e. Selling Costs ................................. = RM ?
(phone, telex, cables, travel etc.)

f. Advertising, catalogues etc. .......= RM ?
=========
Add up all the above cost
to arrive at your Product Cost
=========

Next:

Secrets of International Trading
APEC The EEC InCoTerms 2000

Exporting Starts Here

Export Marketing Strategies

How to manage Export Promotion?

Documentation for Exporting

How to Draft an Agency Agreement?

Export Trade Barriers & Trade Blocks

Getting Paid for Exporting

Export Insurance

How to Develop an Export Market?

How to Conduct Export Research?

How to calculate Costing for Export?
Page 1, Page 2, Page 3

Hazards of Export Packing & Shipping

Export Shipment and Transportation

4 P's of Business Correspondence

About Pallet a transportable platform

2. Determine Export Cost

a. Use your above Product Cost = RM ?

b. Add Crating cost ............................... = RM ?

c. Add Forwarding cost ....................... = RM ?

d. Add Documentation cost ............... = RM ?

e. Add Product Insurance cost .......... = RM ?

f. Deduct Duty Drawback, if any ......... = RM?

g. Add your required Profit ................. = RM ?
==========
Total it up, this will be your Basic selling price

h. Add Agent's commission .............. = RM ?

i. Add Bank Interest .............................. = RM ?

=============
This will be your Factory sales price or Ex Works Price
=============

Next

3. Determine Export Shipping Cost

a. Use your above Ex Works Price .......................... = RM ?

b. Add Local Inland Freight Wharfage Charge etc. ... = RM ?
========
Total it up and this is now your FOB price

c. Add Ocean/Air Freight Marine Insurance ............... = RM ?
==========
Total it up and this is now your CIF price

Next

4. Determine your Export Price in US$

Take your above CIF price ........................................ = RM ?

Add the charges for shipping your goods to
the foreign port of entry (CIP) ................................... = RM ?
=========
Total it up and
convert it into foreign currency at current exchange rate and this will be your C.I.F. export price to the foreign port of entry in US$ currency.

Back to page 1/3 page 2/3 End of page 3/3

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Recommended references
related to Export Pricing
A key tasks of an exporter is to calculate the price that the foreign buyer has to pay for your products.
How to do Costing for Export?
Page 1/3 Page 2/3 Page 3/3

Most foreign buyers prefer to be quoted in their local currency or in US dollars.
Analysis of Export Pricing

To established in a new market, be satisfied with just breaking even or even incurring a loss. Pricing Strategy for Export

The cost-plus method of pricing ensures that the exporter will be selling at a profit.
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Pricing procedure for export costing quotation Checklist of Export Pricing Strategy

Costing in your local currency and convert to foreign currency for export pricing of your products. Summary of Export Price Costing

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