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here: Step 8: Preparing your export
plan > Preparing an export marketing strategy for
your firm >
The export price >Costing for
exports > Costing sheet framework |
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Costing
sheet framework
A. Calculating an EX WORKS price
Start
| Production costs |
Direct raw material and component costs (including
delivery charges)
|
R |
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Direct labour costs
|
R |
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Product adaptation costs
|
R |
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Individual and sales packaging and labelling adaptation
costs
|
R |
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Factory overhead (including rates and taxes, lights
and water, etc.). Pro Rata
|
R |
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Administrative costs (including office administration,
IT systems, insurance, etc.). Pro Rata
|
R |
|
Production finance charges. Pro Rata
|
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), adaptation
|
R |
|
| Communication costs (faxes, telephone calls, etc.) |
R |
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| Translation and/or creation of advertising material, presentations, catalogues,
videos etc. |
R |
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| Agency marketing costs and other professional fees, such as sales commissions |
R |
|
| Patent and trade mark 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 |
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| Total shipping preparation costs |
|
+R |
equals
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Total Ex Works cost of product =
|
R |
add
| Export financing
costs and profit mark-up |
| Cost of financing |
R |
|
| Export credit insurance |
R |
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| Discount of receivables |
R |
|
| Currency conversion costs |
R |
|
| Provision for bad debt |
R |
|
| Cost of credit checks |
R |
|
| Total export financing costs |
|
+R |
Profit margin (Allow for unforseen costs, unavoidable risks and simple mistakes common in new undertakings)
|
|
+R |
equals
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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 (including any heavy-lidt costs, if applicable) |
R |
|
| Storage charges |
R |
|
| Wharfage costs |
R |
|
| Terminal charges |
R |
|
| Additional sealing of containers requested by shipping line |
R |
|
| Non-standard container handling charges |
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 |
|
| Provision for bad debt |
R |
|
| Cost of credit checks |
R |
|
| Total export financing costs |
|
+R |
Profit margin (Allow for unforseen costs, unavoidable risks and simple mistakes common in new undertakings)
|
|
+R |
equals
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 |
|
| Provision for bad debt |
R |
|
| Cost of credit checks |
R |
|
| Total export financing costs |
|
+R |
Profit margin (Allow for unforseen costs, unavoidable risks and simple mistakes common in new undertakings)
|
|
+R |
equals
Calculate a CIF price quotation
Start with
|
Total C&F 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 |
|
| Provision for bad debt |
R |
|
| Cost of credit checks |
R |
|
| Total export financing costs |
|
+R |
Profit margin (Allow for unforseen costs, unavoidable risks and simple mistakes common in new undertakings)
|
|
+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 |
|
| Provision for bad debt |
R |
|
| Cost of credit checks |
R |
|
| Total export financing costs |
|
+R |
Profit margin (Allow for unforseen costs, unavoidable risks and simple mistakes common in new undertakings)
|
|
+R |
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