You can check various foreign trade teaching information on the Internet.

The general content includes: product specifications, quantity, unit price, delivery and transportation method (such as FOB), insurance, taxes, etc. that need to be clearly provided to the customer when quoting.

This article of ours serves the community members of RxLibra. The focus is to use a quotation form to allow community members to maintain reasonable quotations and profits when conducting cross-border trade.

When you are planning a commercial project, price is undoubtedly one of the most important conditions for whether the project can achieve market success.

So when you think about price, you actually have to think about the price at which the end consumer gets the product.

As shown in the figure below, a product needs to go through more than 9 links from raw materials to finished products and then to consumers.

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The total price paid by consumers when purchasing will be allocated to each link. When the profits are reasonable, the entire supply chain will operate. Otherwise, the product will disappear from the market.

Basically, business is simple, calculate your upstream purchasing costs, add a profit to keep you running, and then quote your price to your downstream customers.

Note that the profit margins in the picture are all enumerations. Different products and different costs require different interest rates.

Moreover, the administrative expenses and taxes that you and your customers need to bear when operating in the local market need to be covered by profits.

Generally speaking, trade is not complicated. You only need to do it a few times and run through the entire process of products, transportation, customs declaration, collection and payment, and sales, and the business will run.

The only complications are the details of the operation, and all that is needed is patience to advance.

Enjoy your business!


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