Confused? Click here to access guidelines for completing this costing sheet.
- 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 | |