Export Help: Costing sheet framework

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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 =

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

B. Calculating a FOB price

Start with

Total Ex Works cost of product

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

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

C. Calculating a C&F price

Start with

Total FOB cost of product

add

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

equals

Total C&F cost of product

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

Calculate a C&F price quotation

Start with

Total FOB cost of product

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

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