Use this export costing sheet to track your spending and keep your business profitableIosif Galanakis
During the initial evaluation, establishing the cost of exporting within a limited range may be sufficient to estimate the viability of a transaction. Exporters must determine, as precisely as possible, the cost of exporting products. They must consider all real costs to be included and add the profit margin. The terms of sale negotiated with the importer will also affect the export cost.
Exporters can determine the cost of the product according to different Incoterms® rules (such as CIF or FAS), and then negotiate the most suitable terms. These negotiations will affect the procedure for determining export cost.
How an export costing sheet will help you
An export costing sheet details the costs involved in supplying goods to a foreign importer. Completing this document enables the exporter to quote a price that will cover all the costs involved in a transaction—including transportation, commissions, fees, customs, financing and foreign exchange costs, and the profit margin.
The costing sheet itemizes all costs and produces a bottom line that enables the exporter to establish a viable selling price. This process can help the exporter find out where they will incur costs and where they might reduce or eliminate expenditures.
There are many export costing sheet examples available free of charge, often through national or regional government offices. Contact your local government department or export credit agency for information on available tools. Some examples include the following organizations:
- The U.S. Small Business Administration has costing worksheets available as part of its free downloadable Export Business Planner.
- New Zealand Trade & Enterprise has costing sheets as part of its Thinking about Exporting.
- Ontario Association of Trading Houses has an advanced online export costing calculator.
- ExportHelp in South Africa has online information and costing sheets.
The sheet provides an example of an export costing sheet designed to be as comprehensive as possible.
Not all the costs listed are relevant to every transaction, but organizations should recognize the wide range of factors that can affect the bottom line.
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