Why do you quote Ex-works prices and not FOB Prices?
Stu Clarke
Last Update hace 2 años
It quite simple, it’s impossible for us to quote FOB prices in a price list or quotation.
The reason is FOB prices are from one location usually a factory and trucked to the same port every time so the cost can be calculated easily.
However, our products are made in 100’s of locations and we ship from different ports, depending which is the closest port. If you order a mixture of products which is what 99% of customers do, they most likely are made in different locations.
This is the problem. The goods then need to be trucked to a central location so they are together for loading on the container.
This cost is never the same as it depends on the location of the production, how many different locations, how far apart they are from each other and the quantities ordered.
As all customers order different products and reorder different products or quantities the cost is always changing and never fixed.
In simple terms FOB is the cost of goods + a proportion of the export cost added to each item.
We give you the cost of goods + the cost to consolidate the goods + the cost to export the whole order as a separate costs. These consolidation costs can only be calculated once the order and quantities have been decided and fixed.