A Complete Cost Analysis Of Importing From China
Here we have a simple breakdown of the complete cost inquiries you will encounter when importing from China
. This will cover the basics and afford an overview of what to expect when you engage in this business. When importing products from China, any entrepreneur aims to take on a particular good at the lowest price possible without compromising its quality. Also, a good sending deal and a decent gain must also be considered without increasing product prices. If you are getting into this kind of trade, getting the process right the first time is important to avoid future difficulties. Lets start understanding
how much does it costs to import from China.
The following are some tips on How to Appropriately Cost Your New Import Project:
1. Get your Product Purchasing Cost (PPC) Right from the Start
Before anything else, you need something that attracts your target customers and is made of the highest standard possible. Meanwhile, the price must always correspond to the product you are selling. Make sure that everything from the actual product to the packaging is covered in the agreed price between you and your supplier. That might also include the foam moldings.
2. Considering Your Freight Cost
There are a number of freight forwarders who will offer their services at a low price. All you have to do is determine which freight mode suits you best. For instance, if you are the type of importer who just wants the fastest delivery mode and not too particular about the price, then, read on.
You can choose from the following three modes of shipment:
Sea Freight - this is the longest mode but also the cheapest.
Air Freight - this is the quickest mode and also the most expensive
Sea and Air Freight - a combination of both which is rarely used
Going back to step one, ensure that the supplier includes all the services they can accommodate in their quotations. Make sure that nothing is disregarded. Ignoring some details can hinder your import process.
3. Dealing with Customs and Tariff
This is the next logical step. The products you bring in is subject to custom duties levied by the country you plan to ship to. You need to know what league your products fall into. Other things you have to deal with are tariff rates, insurance, freight and storage and others. To help you along the way, hire a customs broker.
4. Gauge Your Costs
You are already shelling out money from the time you sourced out your product up to freight and handling, down to palletizing and storage of it, so always compute your overall cost. Of course, please include the side costs, currency exchange fluctuations or the rise of raw material costs.
5. Time to Make Money
After computing all of your costs and making a proper accounting, you will now be able to add up your sales margin. Always be aware of fluctuations in the currency exchange and the cost of the materials needed to produce that product. Set a validity date just in case the unexpected does happen so that your customers will be scrambling for your merchandise at its current price.
Finally, make sure its a price your customers will find hard to resist while giving you the profit gain you deserve I hope you got that! Good luck on the importation business!
by: how much does it cost to import from China
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