Basic elements to include / remember when building an export price
What about reinvestment?
- Cost price
- Margin
- Logistics
- Taxes (Local)
- Taxes (at arrival?)
What about reinvestment?
Example of a price buildup - Champagne bottle to US market
EXW |
Price % |
Ex. |
Champagne |
USD |
Price per HL |
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Internal transport |
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Refridgeration, filtration |
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Thermolisation |
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Product loss |
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PRICE FOR 1 BTL - 0,75L |
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GROSS MARGIN |
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(margin / bottle) |
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Packaging (bottle, cap, cork, label...) |
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Box (6 or 12, cardboard, wood...) |
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**TOTAL EXW PRICE** |
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CPT & CIP |
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Loading into Truck / Container |
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Transport to port (air, sea...) |
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Customs / Administrative costs |
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THC - Terminal Handling Charges |
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Immobilisation charges |
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FCA/FOB - ON BOARD PRICE |
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FREIGHT / CARRIAGE TO |
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CPT PRICE |
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Insurance (CPT / 1 - t& 1,1) |
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**TOTAL CIP PRICE** **CUSTOMS VALUE** |
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DAP |
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Customs taxes |
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Other tariffs |
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Internal Revenue Tax |
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Transport to first tier |
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Importer margin |
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FIRST TIER SELLING PRICE |
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Distributor margin |
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SECOND TIER SELLING PRICE |
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Retailler margin |
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VAT and other taxes |
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***FINAL CUSTOMER PRICE*** |