CONVERTING FOB <COUNTRY> PRICE TO US RETAIL PRICE
To assist you in setting your price versus the competition, Global Access has prepared the attached FOB to Retail USA model that provides you with a projection of the retail price of your product in six key US sales channels. Even if the retailers prefer to purchase your product FOB , it is very important in your negotiations to understand how your price converts to a US retail price. We have worked with experts from the retail industry to develop average gross margins that are used by retailers in setting their selling price. This attached model will enable you to better compare the price of your product to those that of products selling in US retail stores. The gross margins do vary from product category to product category, but the attached is a workable average.The primary steps in the pricing process are: 1. FOB (Free on Board) port of exit price; 2. CIF (Cost Insurance Freight) US port of entry price; 3. LDP (Landed Duty Paid) price: at US port of entry and cleared through US Customs; 4. DDP (Delivered Duty Paid) price: delivered to the retailers distribution center. US retailers may buy products in each of the ways listed above, but it is important for you to understand the overall process. On the attached sheet, we have assumed that your sales would be directly to the retailer, and not through a distributor. Therefore, the DDP price is the same as the Wholesale Price to the retailer. In some cases, the US retailer will ask to have their product shipped on a need only basis from a U.S. inventory. Utilizing a distributor to achieve this type of delivery can raise the cost of your product by as much as 20% - 30%. Again, the amount varies in different product categories. Assumptions In order to start the process of converting your FOB price, we had to make some general assumptions. To refine the pricing model, you will need to further modify our model based on the specifics of your product. Global Access determined the DDP price by using the following estimates of import costs: 1. Ocean freight shipping: $2,500 It is important for you to note that your projected retail cost will vary based upon the number of units shipped in a container. We have used one of three averages for the number of units per container for the purposes of this retail price projection. The averages we used for the attached model, based on the size of your product, are either: " 1,000 units per 40 foot container " 10,000 units per 40 foot container " 40,000 units per 40 foot container
Am I missing the link to the model or sheet somehow? This post looks very useful but it seems like I can only see the first part of it. The last line visible is " 40,000 units per 40 foot container" and I can't locate a link to an attachment.
Quoting from [kalinh]:Am I missing the link to the model or sheet somehow? This post looks very useful but it seems like I can only see the first part of it. The last line visible is " 40,000 units per 40 foot container" and I can't locate a link to an attachment.
Kalinh, did you find the link of the model?