I am new to the business position of a foreign trade company and need to quote. The customer is sensitive to the price, so the quotation needs to be more precise. It is not only to win a deal, but also to make a profit. So I want to know how to turn the domestic tax-included price into a FOB price.
You must first understand the export tax rebate rate for quoted products. It is recommended to check the export tax rules of the year carefully, and it is necessary to ensure that the rate is the latest. Then, the actual cost of the payment is calculated according to (RMB price including tax / 1.17) * (1 + 0.17 – export tax rebate rate). In the actual export, except paying for the supplier’s goods, there are some local charges, like the document fee. You can ask the forwarder about this to get the price content and then divide it equally to each unit. In this case, the export cost of the goods is roughly (RMB price including tax / 1.17) *(1 + 0.17 – tax rebate rate) + RMB domestic fees.
Considering the profit rate and exchange rate of foreign trade, the final FOB price is [(RMB price including tax / 1.17) * (1 + 0.17 – tax rebate rate) + RMB domestic fees] / exchange rate * (1 + profit margin).
However, the price of some factories isn’t the price sent to the Shanghai Port Warehouse, but the factory delivery price, even without packaging. Therefore, you must confirm the scope of the supplier’s offer. Besides, the port charges for some goods may be high. For example, a single piece of cargo weighing 60 tons can’t use general containers. It only can be loaded with bulk carriers. Moreover, the cranes that come with the ship may not be able to operate such large cargo. Then, you must get a specialized crane. Yet, the price of this kind of special equipment is relatively high. Borrowing once may cost 5000 yuan or even tens of thousands of yuan. Thus, for some goods that require special arrangements, these costs must be considered in advance.
The exchange rate of the quotation is also a link that needs attention. For example, the recent appreciation trend of the RMB is evident. Hence, it is recommended to calculate the price based on the exchange rate at the time of collection. If your profit margin is high, no matter how the rate changes, it can contain all the extra costs. However, if the quotation profit is only 2%, once the rate or local charge change slightly, your profit will go. So, if the profit margin is not high, you must calculate the cost and cost accurately.
The cost is learned to have an accurate calculation of the profit of each contract. If you can’t calculate the gross profit, even the independent price accounting, it is impossible to face the customer and solve problems by yourself.
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3. How Do Newcomers Choose the Right Firm?
4. How Do Novices Prepare for Interviews?
5. How to Choose the Right Foreign Trade Position?
6. Are Girls Suitable for Foreign Trade Sales?
7. Do Exports of Traditional Industries Have Development Space?
8. Is Foreign Trade Newcomer’s Income Generally Low?
9. How to Adapt to Foreign Trade Posts Asap?
10. How to Improve English Ability in the Short Term?
11. How Can Newcomers Better Communicate with the Leaders?
12. How to Get the Client’s Trust in the Short Term?
13. What Should I Do if I Have A Dispute with the Client?
14. How to Adjust Attitudes When Meeting Differences in Company?
15. How to Communicate with Foreign Customers?
16. What Should I Do if the Company is Filled with Intrigue?
17. What Reference Books Should Foreign Trade Newcomers Read?
18. How to Make Yourself Look More Professional?
19. How to Adjust Mentality When You Switch to Foreign Trade?
20. How Does the Salesclerk Calculate the Gross Profit?
21. How to Calculate the Export Tax Rebate?
22. How do Newcomers Develop Market Based on its Features?
23. How to Calculate the Export Cost Price?
24. How to Fill in the Vendor Registration Form?
25. What is the Format of A Letter of Authority?
26. How to Attract Potential Customers in the Exhibition?
27. The Main Features of Reverse Auction and the Skills to Attend It
28. The Experience of Attending A Reverse Auction
29. Why Don’t Place Orders for Good Price and Products?
30. What if Customers Require Not to Supply to Its Competitors?
31. Can You Really Buy Real Buyer Information?
32. How to Make A Standardized Quotation?
33. How to Prepare for Customers to Visit Our Factory?
34. How Should We Arrange for the Visit of Executive Clients?
35. How to Prepare for the Quality Inspection?
36. What Should Be Noted When Eating Food with Customers?
37. How to Work as A Good Banquet Translator?
38. How to Reasonably Arrange the Time When Customers Visit?
39. How to Prepare for Visiting Clients Abroad?
40. How to Make the Minutes of the Meeting?
41. What If Clients Propose to Sign Exclusive Sales Agreements?
42. Is the Cost of the Hotel Paid by Customers or Us When Visiting?
43. Can Subcontractor Warranty be Provided to End-users?
44. What If the Customer Suddenly Does Not Want the Goods?
45. Suppliers Lost Chances for Backing Up on the Highway
46. How to Maximize Profit through Reasonable Price Strategy
47. How Should Foreign Trade Companies Find their Position?
48. How Do Foreign Trade Companies Choose Export Suppliers?
49. How to Enhance the Control and Influence over Suppliers?
50. Is It Proper to Let Clients Ask Manufacturers to Solve Problems?
51. How to Agent Domestic Factories to Export Their Products?
52. Which Way to Pay the Agency Fee is better?
53. Why Do You Have to Know about Products, Suppliers, Clients?
54. The Process and Cost Calculation of Agent Import Business
55. How to Straighten Out Relationships in the Agency Contract?
56. How Do We Show That We Need An Agent in the Contract?
57. How to Do Good Jobs of Agency Import Agreement Service?
58. How to Determine A Reasonable Agency Fee?
59. Is the Agency Business with Low Agency Fees Worth Doing?
60. Why Do Manufacturers with Foreign Trade Rights Want Agents?
61. How to Use Foreign Trade Company to Open Overseas Market?
62. What are the Difficulties in Collecting Money by Letter of Credit?
63. If Supply Cycle is Long, How to Control the Risk of Quotation?
64. What if Tax Rebate Policy Cause Prices Lower Than Costs?
65. Tips for Paying Commissions to Foreign Middlemen or Agents
66. Why Use Written Documents for Business Contacts?
67. How to Control the Risk of Export Quotes?
68. How to Trade in the Middle East While Controlling Risks?
69. How to Offer the CIF Price to Products with Long Supply Cycle?
70. The Main Situation of Foreign Trade Fraud
71. How to Handle Costs of Repacking Goods at Destination Port?
72. What If the Qualified Products Aren’t Enough to the Contract?
73. How to Handle the Return or Repair of Exported Goods?
74. What Should I Do with Insubstantial Complaints from Clients?
75. How to Handle Disputes in the Agent Export Contract?
76. What If Clients Ask Us to Replenish or Repair Products?
77. What if Clients Demand Compensation for Packing Damage?
78. Parts of Previous Goods Rusted, Clients Ask to Replenish Freely
79. Who Should Bear Import Tariff and VAT for Free Replenishment?
80. What If the Goods Deformed the Container Before Shipment?
81. What If Customers Threaten to Punish Us for Quality Problems?
82. Why Do Customers Never Feed Back on Our Quality?
83. What If Customers Ask Compensation for Damaged Products?
84. What If the Forwarder Delay Delivery, Bringing Extra Costs?
85. What If Customers Have Placed Orders with Wrong Quotes?