How to start a export business and on what basis the cost of goods should be calculated?

[princeoo7]

Went and read this article. Now on what base should the cost of the good should be finalized? any website which helps us? also how to select the shipping company and warehouse or is it the part of the one buying abroad and we don't need to look into it? what if we are our own looking for a warehouse as we have our own person on the other side who will look the sales.

Any help would be great and appreciated

 

[princeoo7]

No one?

 

[b.life]

Good Evening,
If I may say so, You need to decide on the following questions, and then we can move on to others

First : Who is your customer? Is he a consumer or someone else?
Second: How do you want to sell your itmes(wholesale/retail)?
Thrid: How you want the company to be setup(host country only/have brances in other countries)?

Now on what base should the cost of the good should be finalized?

I dont understand, are you talking about the sales price or something else, if it is sales price then raw material cost + production cost + storage cost + transportation cost + profit, if it is something else let me know.

any website which helps us?

Is it regarding the pricing or something related to export business in general? if it is pricing the product then its you who fixes the price.

also how to select the shipping company and warehouse or is it the part of the one buying abroad and we don't need to look into it?

Shipping companies are of two kinds(mostly, there are more but boradly speaking)
Consumer Oriented & Commercial Oriented
Consumer Oriented are like DHL, Delhivery, India Post Etc, they are good to move small amount of goods but not container load(they can but they cost a lot)
Commercial Oriented( In India Globelink WW India, Sarvam Logistics India, etc These two I have personal experience so I named them but there are hundreds of others)
The Commercial Ones can be further sub divided into
1. Door to Door,
2. Section Handlers

1. Door to Door Logistics
1. They will pick up the goods from the manufacturer wharehouse
1.5. Book insurance for the goods
2. Take it to the port of orgin
3. Do the export customs
4. Move the good to the port of destination(Air/Sea/Land)
5. Do the customs at the port of destination
6. Move the goods to the destination address(Air/Sea/Land)
7. Deliver at the destination address(wharehouse/factory)

2. Section Handlers
They will do any one or more of the above listed activities(in the door to door logistics)

Pros & Cons

Door to Door | Section Handlers
Pros | Pros
They handle everything | Cheaper

Cons | Cons
Costly | Communication between the agents are not always good and they will screw up things, we need to be extremely careful with them and documention work is a nightmare(first time)

There are more but I guess you get an idea

Regarding Warehousing
If you ship it to end consumer or to a customer then you dont need to worry about warehousing but if you ship it to a subsidy of your own company they you need to have an warehouse to distribute the goods

what if we are our own looking for a warehouse as we have our own person on the other side who will look the sales.

If you have your own sales then you first need to have a subsidy of your company over there in that case yes you need your warehouse to store the goods

Any help would be great and appreciated

I know I have not answered all possible questions but do post and I will answer them as much as I know

Regards

Edit 1: Added 1,2,3 questions
Edit 2: Pros and Cons get into a single line

 

[princeoo7]

Good Evening,
If I may say so, You need to decide on the following questions, and then we can move on to others

First : Who is your customer? Is he a consumer or someone else?
Second: How do you want to sell your itmes(wholesale/retail)?
Thrid: How you want the company to be setup(host country only/have brances in other countries)?


I dont understand, are you talking about the sales price or something else, if it is sales price then raw material cost + production cost + storage cost + transportation cost + profit, if it is something else let me know.

Is it regarding the pricing or something related to export business in general? if it is pricing the product then its you who fixes the price.


Shipping companies are of two kinds(mostly, there are more but boradly speaking)
Consumer Oriented & Commercial Oriented
Consumer Oriented are like DHL, Delhivery, India Post Etc, they are good to move small amount of goods but not container load(they can but they cost a lot)
Commercial Oriented( In India Globelink WW India, Sarvam Logistics India, etc These two I have personal experience so I named them but there are hundreds of others)
The Commercial Ones can be further sub divided into
1. Door to Door,
2. Section Handlers

1. Door to Door Logistics
1. They will pick up the goods from the manufacturer wharehouse
1.5. Book insurance for the goods
2. Take it to the port of orgin
3. Do the export customs
4. Move the good to the port of destination(Air/Sea/Land)
5. Do the customs at the port of destination
6. Move the goods to the destination address(Air/Sea/Land)
7. Deliver at the destination address(wharehouse/factory)

2. Section Handlers
They will do any one or more of the above listed activities(in the door to door logistics)

Pros & Cons

Door to Door Section Handlers
Pros Pros
They handle everything Cheaper

Cons Cons
Costly Communication between the agents are not always good and they will screw up things, we need to be extremely careful with them and documention work is a nightmare(first time)

There are more but I guess you get an idea

Regarding Warehousing
If you ship it to end consumer or to a customer then you dont need to worry about warehousing but if you ship it to a subsidy of your own company they you need to have an warehouse to distribute the goods


If you have your own sales then you first need to have a subsidy of your company over there in that case yes you need your warehouse to store the goods


I know I have not answered all possible questions but do post and I will answer them as much as I know

Regards

Edit 1: Added 1,2,3 questions

Selling price as related to how we will finalize the price for a geographical location. As i was told by someone locally that we can get a quotation for the product we want to ship and so to add that shipping price and custom + tax price in the msrp, I was inquiring the above stuff. a lot of points cleared by your answer. will get more clearity on my side and if required, will update the current post as per that. Thank you for your assistance

 

[b.life]

Selling price as related to how we will finalize the price for a geographical location.

The selling price is the price that will net you a profit(end of discussion nothing more nothing less)
But billing price is different, there are different kinds
1. EXW(Ex Works) (The price of your product at your warehouse) (Pickup, movement, customs all extra and on customer hands)
2. FOB(Freight on Board) (The price of your goods at the export port) (Destination customs, movement to city near by, last mile delivery all on customer hands)
3. DDP (Delivery Duty Paid) (also known as door to door) The price of your goods at the customer door

When manufactures say selling price they mean ExWorks nothing else(This is the price you are willing to sell and make profit), Everything eles is value added services provided by the manufacturer for the customer for a price.

As i was told by someone locally that we can get a quotation for the product we want to ship and so to add that shipping price and custom + tax price in the msrp,

I know a lot of Indian companies do that, but please dont, be upfront and always quote your ExWorks price to your customer but if they are your products consumer then quote DDP but give a complete breakdown starting with EXW + shipping + customs. So they know what is what and will apprecieate your honesty, good for long term business. Some business try to make money in this too but each their own.

I was inquiring the above stuff. a lot of points cleared by your answer. will get more clearity on my side and if required, will update the current post as per that. Thank you for your assistance

Glad to help

This article provides a good details on the shipping terms

A Beginner's Guide to Incoterms: EXW, FOB, and DDP Explained

A beginner's guide to Incoterms! Noviland dives into the obligations that embody each term and the ideal implementation of the most commonly used Incoterms.

noviland.com

Regards