IIIExportPrice

1、SEIB OF GDUFS1Chapter ThreeChapter ThreeExport PriceExport PriceSEIB OF GDUFS23.1 Expression of export pricelFour components in a standard format of a price: A code of currency: USD, CAD,CNY, EUR, GBPA number indicating the price unitA unit for measuring quantity: kg, gr, m/t, yd, setA certain trade

2、 term: FOB, CFR, CIFlExamples:USD225.30/piece CIF New YorkFOB Guangzhou EUR12.80/setSEIB OF GDUFS33.2 Pricing considerationslCost Cost of productionlDirect cost: material costs, labour costs, allocation of fixed costs, packing costs, etc.lAdministrative costs: overheadCost of saleslMarketing costs:

3、advertising, sales trip expenses, commissions intermediary services Cost of deliverylWarehousing and transporting charge, insurance premium, taxes and tariffs, customs duties SEIB OF GDUFS43.2 Pricing considerationsl Anticipated profit marginin an absolute numberin a percentage profit marginl Capabi

4、lity of target market Referring to the consumption power, income level, supply and demand relationship The higher the capital income of the target market, the higher the pricel Payment terms The lower the financing charges, the higher the risk of paymentl Other factors to be considered foreign excha

5、nge rates international market price for similar products policies and regulations in a particular market areaSEIB OF GDUFS53.3 Calculation of priceTable 3.1 Costing WorksheetSEIB OF GDUFS63.3 Calculation of priceSEIB OF GDUFS7Marginal Cost Pricingl 边际成本定价l 边际成本定价（Marginal cost pricing）边际成本定价是指这样一种定

6、价规则，厂商或国有企业使得价格等于边际成本。边际成本定价法也叫边际贡献定价法，该方法以变动成本作为定价基础，只要定价高于变动成本，企业就可以获得边际收益（边际贡献），用以抵补固定成本，剩余即为盈利。其计算公式为：l P = (CV + M) / Ql P为单位产品价格；CV为总的变动成本；Q为预计销售量；M为边际贡献，M = S CV；S为预计销售收入。如果边际贡献等于或超过固定成本，企业就可以保本或盈利。这种方法适用于产品供过于求、卖方竞争激烈的情况。在这种情况下，与其维持高价，导致产品滞销积压，丧失市场，不如以低价保持市场，不计固定成本，尽量维持生产。l 在对财富的占有过程中，边际收益的减

7、少，边际成本就会增加。为了增加收入，牺牲家庭，牺牲婚姻，在某一点上说，追求财富就会变成了“划不来”的行为。比如好的婚姻，其幸福感的价值相当于10万美金。如果上船工作收入不足此数，牺牲了婚姻，那此行为就是不划算的。SEIB OF GDUFS83.3.1 FOB Price Table 3.2 FOB Costing Worksheetl FOB in freight currency FOB in freight currency = (Total Cost + Profit)/Exchange Ratel FOB in local currency SEIB OF GDUFS93.3.2 CF

8、R Pricel If FOB price is available CFR = FOB + Ocean Freightl Ocean freightProvided by shipping linesQuoted as packaged priceOthers like “additionals” and “surcharges”SEIB OF GDUFS103.3.3 CIF Pricel If FOB price is available CIF = FOB + Ocean Freight + Insurance Premiuml If CFR price is available CI

9、F = CFR + Insurance Premium l Calculation of Insurance Premium (I) Based on contract value/invoice value + A markup (normally 10%) to cover incidental costs Formula: I = CIF x (1+10%) x Premium Rate (R)l Therefore CIF = CFR + CIF x (1+10%) x Premium Rate (R) or CIF = CFR / (1 110% x R)SEIB OF GDUFS1

10、1Conversion of FOB, CFR & CIF Pricesl Conversion of FOB to other pricesCFR = FOB + FCIF = (FOB + F) / 1 (1+markup) x Rl Conversion of CFR to other pricesFOB = CFR FCIF = CFR / 1 (1+markup) x Rl Conversion of CIF to other pricesFOB = CIF x 1 (1+markup) x R FCFR = CIF x 1 (1+markup) x RSEIB OF GDUFS12

11、3.3.4 Price including commissionl Net price = basic costs + profitl CommissionAn incentive payment made to the middlepersons for their intermediary servicesExpressed in a fixed figure or in a percentage ExampleslCFR London GBP100 per doz, including 2% commission lUSD200 per M/T CIFC2% London lCIFC3

12、Hamburg USD100/setlCAD150 per M/T FOB Toronto, including CAD8 per M/T commissionSEIB OF GDUFS133.3.4 Price including commissionlTwo ways of calculating commissionbased on invoice/contract value lC = contract value x C ratebased on FOB or FCA: lUnder such terms as CFR, CIF, C is calculated before F a

13、nd I are deductedlFormula:C = price including C (FOB/FCA) x C rateNet price = price including C (FOB/FCA) C = price including C x (1- C rate)Price including C (FOB/FCA) = net price / (1-C rate)SEIB OF GDUFS143.3.5 Price with discountl Discounta certain percent of price reduction, a special favor giv

14、en by the exporter to the importer l Reasons for discounting:To increase market competitivenessTo get rid of stocked goodsAs a motivator for B to introduce goods into new marketsAs a compensation for settling disputes or previous orders SEIB OF GDUFS153.3.5 Price with discountl Discount expressed in

15、 % or fixed numberUSD200 per M/T CIF New York less 3% discountCIFD3 New York GBP200 per M/TEUR200 per unit CIF London including 1% discountl CalculationBased on the contract valueDiscount = contract price x discount rateActual price = contract price discount = contract price x ( 1- discount rate ) S

16、EIB OF GDUFS16Conversion of PriceNote: markup: percentage of the contract valueR: Insurance premium rateFactory priceFac price+ All other costsExpected profitExchange rate FOB priceFOBC%/D% priceCFR priceCFRC%/D% priceCIF priceFOB1-C%/D%CFR1-C%/D%CFR1- (1+markup)xR+ Freight + Insurance+ Ocean Freigh

17、tCIF1-C%/D%CIFC%/D% priceSEIB OF GDUFS17Price Calculating (question on the spot)l CBM: 0.45*0.3*0.5=0.0675/ctnl 1*20ft can load 28/0.0675=414.814815414l Freight for FCL: $1050/414/20=$0.1268/dz$0.127/dzl FOB price of your company: 23*(1+5%)*(1+10%)/7=$3.795$3.8/DZl FOBC 5 price for 1*20ft: $3.8/(1-5

18、%)=$4/DZ CIF price for 1*20ft: CFR=$3.8+$0.127=$3.927$4 CIF=$4/(1-110%*0.5%)=$4.02l CFR for LCL: l 65*(0.45*0.3*0.5)*1/20=$0.22/dzl $3.8+$0.22=$4.02SEIB OF GDUFS183.4 Understanding the price Export revenue (FOB) Export cost (FOB)Export revenue (FOB)Export Profit Margin 出口盈亏率=X 100%l Export profit ma

19、rgin a ratio for measuring profitability of an export transaction Standing for how much profit can be generated for every unit of currency in sales Formula as follows:Note:l Figures calculated in exporters local currencyl Export revenue and cost excluding overseas transport charges and insurance cos

20、tl The higher the Export Profit Margin, the more profitable the transaction is. SEIB OF GDUFS193.4 Understanding the price Export cost in Local CurrencyExport Revenue in Foreign CurrencyECFFE =l Export cost for foreign exchange (ECFFE) Interpreting profitability with currency factor Sanding for how

21、many units of local currency the exporter should pay to make one unit of foreign currency Formula as follows:Note: l The less the ECFFE is, the more profit the exporter can make l See Example on Page 65SEIB OF GDUFS20Wording of Prices in Contractl HKD 100 per doz EXW GUANGZHOU (5 Beijing Road)l CAD

22、200 per gr FCA Toronto (Airport)l EUR 150 per pr FOB Shanghail JPY 600 per lb FAS Tokyol AUD 120 per pc CFR Sydneyl CHF 300 per set Carriage Paid To 5 Maple Rd. Geneva(sea/air shipment: from Guangzhou to Dubai by sea, then by air to Geneva)l USD 250 per set Delivered at Sino-Mongolian Frontier (Erli

23、an)l EUR 350 per M/T DES Guangzhoul GBP 500 per unit DEQ LondonSEIB OF GDUFS213.5 Communication of PricelStages involvedInquiry/Invitation to offerOffer/QuotationCounter-offerAcceptanceSEIB OF GDUFS223.5.1 Inquiryl Definition: A potential client asks for information from the counterpart to his inten

24、tion in buying or selling of a certain commodity.l Can be initiated by both importers and exportersl Can be made from one to one or severall Expressing an intention of transaction onlyl No obligation to progress the transaction (inquirer) & no obligation to answer (inquired party)SEIB OF GDUFS233.5.

25、2 Offer/Quotationl Definition: a sufficiently definite proposal addressed to one or more specific persons for concluding a contract, necessarily indicating the intention of the offeror to be bound in case of acceptance. l Determinants of an offerOne addressed to one or more specific personsSufficien

26、tly definite: indicating the goods, expressly or implicitly fixing or making provision for determining quantity and priceIndicating the intention of the offeror to be bound in case of acceptanceSEIB OF GDUFS243.5.2 Offer/QuotationlWhen it reaches the offeree, it becomes effective lValidity periodBy

27、a fixed date for acceptanceBy a period of time for acceptancelWithdrawal of an offerBefore or at the same time of the offer reaching the offereeSEIB OF GDUFS253.5.2 Offer/Quotationl Revocation of an offerBefore offeree dispatches acceptanceException: lWhen it is irrevocable: eg. having fixed time fo

28、r acceptancelWhen offeree relies on it and has acted.l Termination of an offerLegally revoked by offerorNot accepted by offeree within validity/reasonable periodRejected or counter-offered by offereeOther uncontrollable eventsSEIB OF GDUFS263.5.3 Counter-offerl Definition: a reply to an offer which

29、contains additions, limitations of other modifications.l A refusal or rejection to the original offer original offer terminates automaticallyl Counter-offer can be made for several times before the final acceptance.l Possible aspects of modifications :Price, paymentQuality, quantity of goodsPlace &

30、time of deliveryExtent of one partys liability to the otherSettlement of disputeSEIB OF GDUFS273.5.4 Acceptance l An acceptance is an unconditional statement made formally by or an action conducted by the offeree indicating assent to an offer or counter-offer.l Acceptance to be made within the valid

31、ity period or reasonable timel Silence or inactivity does not in itself amount to acceptance. l Effective at the moment it reaches the offeror within the fixed/reasonable time l A contract is concluded at the moment when an acceptance of an offer becomes effective. SEIB OF GDUFS28Example: Price Comm

32、unicationE 30/6 Your fax dated 29th: we offer until 4/7 here 200M/T CIF USD1950,immediate shipment and payment by sight L/C. I 2/7your fax dated 30th: client is interested. But discussion takes time and we need offer to be valid for 10 days. Any possibility to increase quantity and to decrease price

33、?E 3/7Your fax dated 2nd: quantity can be increased to 300M/T, offer valid until 15/7 hereI 9/7your fax dated 3rd: please airmail 2KG samples and consider further increase of quantity and decrease of price.E 10/7 your fax dated 9th: samples have been sent. We offer you a special price of 1900. Pleas

34、e reply promptly.SEIB OF GDUFS29I 14/7your fax dated 10th: please further defer the firm offer of 300M/T USD1900 since the samples are not received yet. Decision will be available one week after the receipt of samples.E 17/7 Your fax dated 14th: we agree to extend the validity period to 25/7.I 22/7y

35、our fax dated 17th: we accept your offer of 300M/T CIF 1900. Please arrange immediate shipment, payment by L/C. Certificate of Origin and seaworthy packing should be provided. E 24/7 your fax dated 22nd: market changed. Goods had been sold before we received your fax.Example: Price CommunicationSEIB

36、 OF GDUFS30I 25/7your fax dated 24th: difficult to accept your apology. Your fax dated 17th agreed to extend the validity period to 25th. Your withdrawal of firm offer goes against practice. If you want to adjust your price we can negotiate with client with no guarantee of acceptance.E 29/7 Your fax

37、 dated 25th: we are sorry but the 300M/T have been sold already. The best we can do now is to provide 200M/T2650, shipment during Aug/Sep, subject to your reply here by 31st.I 30/7your fax dated 29th: we cannot accept your new offer and reserve our right of arbitration.Our 22nd fax already accepted

38、your firm offer of 300M/T. Shipment during Aug/Sep is agreed. Otherwise we will claim compensation of USD232950 (2650-1900) X 300. Example: Price CommunicationSEIB OF GDUFS31E 2/8Your fax dated 30th: our fax dated 17th only agreed to defer the offer until 25/7, but with no indication that it was a f

39、irm offer. Our old customers all know that orders should be subject to our confirmation. To be friendly we offered you another 200M/T 2650, however, to our surprise you were considering arbitration. In this case we are willing to offer you 200M/T by an appropriate price. Please give your friendly op

40、inion. Thanks.I 4/8your fax dated 2nd: we cannot agree with your suggestion. According to your requirement on 22nd we accepted your offer. The order must be executed under the condition that 300M/T1900. To be friendly we accept shipment during Aug/Sep. Otherwise we will carry out arbitration in Beij

41、ing. Example: Price CommunicationSEIB OF GDUFS32E 12/8 Your fax dated 4th: considering our friendship, we decide to sell to you 200M/T in Sep and 100 M/T in Oct, without providing C.O., packing as each 75KGs in a single-layered gunny-bag and irrevocable L/C for payment. Please find details in our di

42、spatched letter. I 13/8 your fax dated 12th: we agree 200M/T in Sep and 100 in Oct. L/C will be opened immediately. We will try to compensate for your troubles this time by future orders. Example: Price CommunicationSEIB OF GDUFS33Solutions to Exercisesl I. 1. B l 2. Dl 要计算佣金的金额，就必须先计算出含佣金的CIF价格。l C

43、IFC2=100/1-2%=102 102*2%=2.04l 3. Dl A中缺少了价格的单位；B在CIF后面漏掉了目的港的名字；C没有注明佣金的比例l 4. Al 根据CISG,当一方接受另一方的报盘时，合同就可以确立了。l 5. Cl 如果一方对另一方的报盘在价格及支付方式、货物质量及数量、交货地点及时间、双方对对方所负责任和纠纷解决方法上进行重要更改，则被认为是对原报盘进行还盘。如果对以上提及内容以外的东西进行修改，则视报盘方的反应而定，不一定构成还盘。SEIB OF GDUFS34l 6. Dl 一个报盘在以下几种情况下都会被终止：被合法撤回或撤销；在有效期内未被接受；被拒绝或由于不可

44、抗力使报盘中的承诺的义务无法实现。l 7.Al 报盘方在初始报盘到达询盘方之前通过另外一则消息终止了原报盘，这是对该报盘的撤回行为。l 8. Bl 尽管稳重出现了accepted的字眼，但该则消息对价格进行了修改，所以应被视为还盘。l 9. Dl A中EFG并非报盘的对象，他做出的接受没有效力；B中XYZ没有收到报盘的情况下表示接受，也是没有依据的；C答案中XYZ提出了earlier shipment，这其实是一个还盘，不是接受。l 10. Bl 构成一个正确价格的四要素应该是货币、金额、单位和贸易术语（包括术语名和港/地名）。SEIB OF GDUFS35IIIl 1. inquiryl A

45、n inquiry is the act of a potential client asking for information from the counterpart to his intention in buying or selling a certain commodity.l 2. offerl An offer is a sufficiently definite proposal addressed to one or more specific persons for concluding a contract, necessarily indicating the in

46、tention of the offeror to be bound in case of acceptance.l 3. counterofferl A counteroffer is a reply to an offer which contains additions, limitations or other modifications.l 4. acceptancel An acceptance is a statement made by or other conduct of the offeree indicating assent to an offer.SEIB OF G

47、DUFS36Short questionsl 1. What are the four components of the standard form of a price?l A code of currency, a number, a unit and a trade term.l 2. While making pricing decision, what major factors should be considered?l When a seller is setting his export prices, the major factors he has to consider include cost, anticipated profit, capability of his target market, terms of payment, competition and relationship between the exporter and the importer.l 3. What are the dif