Cost Stack
- EXW/FOB unit price (materials, labor, overhead, margin)
- Tooling and molds amortized over expected volume
- Packaging and compliance marks
- Freight (ocean/air/rail/express) plus insurance
- Duty/VAT/GST based on HS code and country rules
Hidden Fees
Watch for bank charges, export surcharges, origin/destination port fees, demurrage/detention, and last-mile delivery costs. Confirm free time at the port and who pays if inspections trigger storage.
Reading Quotes
Ask suppliers to separate unit cost, tooling, samples, packaging, and logistics. Request quotes under two Incoterms (FOB + DDP) for benchmarking. Validate HS codes and estimated duty with your broker, not just the supplier.
Simple Cost Model
Use this quick formula per unit:
(FOB price + freight + duty + brokerage + inland delivery + quality cost + buffer) / units.
Keep a sensitivity tab for FX and freight swings. Revisit assumptions every quarter or before peak season.