Guidelines for completing this costing sheet are given here.

  1. 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

 

2. 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

 

3. 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

 

4. 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

5. 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