Import From China Business

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A practical guide for starting a small business

Price Import

When is the “Price is Right”?

Many import businesses are distributors or resellers of imported goods from China. You just imported some real nice vases but you are wondering how to price them to sell? Here is a simple guide to price import.

The Components of Price Import

Here are the inputs to pricing your import goods that you need to keep track of in order to come up with an appropriate price:

  1. Wholesale cost - how much did you pay for the vases?
  2. Handling Cost - how much did it cost to to import the goods into the country including shipping costs, broker fees etc.
  3. Overhead - a portion of the cost to run your business
  4. Profit - keep this reasonable based on market conditions, competition and the willingness of the consumer to pay.

Item

Cost ($)

Manufacturer's Cost - 100 Vases

$6,000

Customs Broker’s Fee

$200

Freight From Factory To Port

$500

Ocean Freight From China

$1,000

Marine Insurance

$500

Import Duties

 

$300

Total Cost

$8,500

# of Vasees

100

Cost Per Vase

$85

Mark Up

100%

Price Per Vase

$170

Price Import - How Much for that Vase?

Below is an example of calculating the cost associated with importing 100 vases from China.  When all the costs are added together, it cost us $8,500 to bring in the goods into the country.

Take $8,500 divided by 100 vases, you end up with $85 per vase as the unit cost.

Using a mark Up of 100% (double the cost), the vase should to be sold at $170 each.

 

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