国际贸易实务英文版第二版ppt周瑞琪.export_price.ppt

* * * * * * * * * * * * * * * * * * * * * * * * * SEIB OF GDUFS SEIB OF GDUFS Chapter Three Export Price * SEIB OF GDUFS * 3.1 Expression of export price Four components in a standard format of a price: A code of currency: USD, CAD,CNY, EUR, GBP A number indicating the price unit A unit for measuring quantity: kg, gr, m/t, yd, set A certain trade term: FOB, CFR, CIF Examples: USD225.30/piece CIF New York FOB Guangzhou EUR12.80/set SEIB OF GDUFS * 3.2 Pricing considerations Cost Cost of production Direct cost: material costs, labour costs, allocation of fixed costs, packing costs, etc. Administrative costs: overhead Cost of sales Marketing costs: advertising, sales trip expenses, commissions intermediary services Cost of delivery Warehousing and transporting charge, insurance premium, taxes and tariffs, customs duties SEIB OF GDUFS * 3.2 Pricing considerations Anticipated profit margin in an absolute number in a percentage → profit margin Capability of target market Referring to the consumption power, income level, supply and demand relationship The higher the capital income of the target market, the higher the price Payment terms The lower the financing charges, the higher the risk of payment Other factors to be considered foreign exchange rates international market price for similar products policies and regulations in a particular market area SEIB OF GDUFS * 3.3 Calculation of price Table 3.1 Costing Worksheet SEIB OF GDUFS * 3.3 Calculation of price SEIB OF GDUFS * 3.3.1 FOB Price Table 3.2 FOB Costing Worksheet FOB in freight currency FOB in freight currency = (Total Cost + Profit)/Exchange Rate FOB in local currency SEIB OF GDUFS * 3.3.2 CFR Price If FOB price is available CFR = FOB + Ocean Freight Ocean freight Provided by shipping lines Quoted as packaged price Others like “additionals” and “surcharges” SEIB OF GDUFS * 3.3.3 CIF Price If FOB price is available CIF = FOB + Ocean Freight + Insurance Premium If CFR price is available CIF = CFR + I