Wednesday, August 18, 2021

How to set the right cost of your imported products to boost your business?

If your customers told you that your reselling price is too high, you should ask about yourself first, “ had you set the right imported product cost?” Don’t always push your suppliers to reduce the cost, because their manufacturing cost is really really small. In case they can push the cost lower, it's only a small reduction. How it can compare with that you had made your reselling cost 200% of the product cost?

What is the best reselling price of your imported products? It's actually a problem of math, do it right. You will boost your business because more customers will buy the right price. Make it dauntingly 200% of the product cost will make your customers shy away from your products. Here below are few steps you can do to make a good reselling price of your imported products to help you boost your business on very good profit.

1)Ask your suppliers to give you a CIF cost. Suppliers generally won’t make money on freight and insurance, all they have is a very small profit based on the cost of the goods. So it's a freebie if you want CIF cost, you can save your time doing other things while they’re busy checking the freight cost with their forwarders.

2)Ask your forwarder the terminal port cost, tariffs, warehousing cost, their handling cost, and shipping cost from the terminal port to your location. Generally, your local agent can help you handle everything after the goods arrived at the terminal port to send the goods to your location. This part of the cost is generally exaggerated when importers ignored checking it with their agents, so they add a percentage of 30% to 50%, however that is actually not so much. So always check with them if you're the first to import and remember to check if you’re an experienced importer because something may change. Having an agent to help you handle the imports can help you with a lot of things, generally, all kinds of problems could be solved if they're very experienced. Sometimes, you even don’t need to import on your own company name, they can clear customs using their name if that can solve the problems. Don’t ask your agents to collect the goods from overseas, the cost could be higher than your supplier’s shipping agents. 

3)Budget your reselling profit. Don’t make it higher than 20%. A profit lower than 20% will make your reselling price more competitive, if goods are sold fast, you can import more containers. It's better than you make all your profit in just one or a few containers. 

Finally, your imported goods reselling price is clear. That’s your supplier’s CIF cost plus cost from your import agents(tariffs are included) and plus your reselling profit(if any tax, should include it in the profit). 

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