1. 1 项目 三 项目 三 价 格 核 算价 格 核 算价 格 核 算价 格 核 算

2. 2 Outlines Task 1 Leading-in 导入 Task 2 Pricing Considerations Task 3 Prices of some terms and conversation Task 4 Understanding prices Task 5 Related English Terms

3. 3 Task 1 Leading-in 导入

4. 4 task 1 Expression of export price Four components in a standard format of a price: –A code of currency: USD, CAD,CNY, EUR, GBP( 货币代 码） –A number indicating the price unit –A unit for measuring quantity: kg, gr, m/t, yd, set –A certain trade term: FOB, CFR, CIF Examples: –USD225.30/piece CIF New York –FOB Guangzhou EUR12.80/set

5. 5 Task 2 Task 2 Pricing Considerations

6. 6 Task 2 Pricing considerations Cost Cost of production （生产成本） –Direct cost （直接成本） : material costs, labour costs, allocation of fixed costs, packing costs, etc. –Administrative costs: overhead –Cost of sales Marketing costs: advertising, sales trip expenses, commissions ， intermediary services –Cost of delivery Warehousing and transporting charge, insurance premium, taxes and tariffs, customs duties （进口税）

7. 7 Task 2 Pricing considerations Anticipated profit margin （预期利润率） –in an absolute number –in a percentage → profit margin Capability of target market （目标市场潜力） –Referring to the consumption power （消费能力）, income level, supply and demand relationship –The higher the capital income of the target market, the higher the price Payment terms （付款条件） –The lower the financing charges, the higher the risk of payment Other factors to be considered –foreign exchange rates –international market price for similar products –policies and regulations in a particular market area

8. 8 Task 3 Task 3 Prices of Commonly used terms(FOB, CFR,CIF) and Conversions

9. 9 Task3 FOB Price Table 3.2 FOB Costing Worksheet FOB in freight currency –FOB in freight currency = (Total Cost + Profit)/Exchange Rate FOB in local currency ( 当地货币）

10. 10 Task3 CFR Price If FOB price is available –CFR = FOB + Ocean Freight Ocean freight （海洋运费） –Provided by shipping lines （航运公司） –Quoted as packaged price （组合价格） –Others like “additionals” and “surcharges” （附加 费）

11. 11 Task3 CIF Price –CIF If FOB price is available = FOB + Ocean Freight + Insurance Premium If CFR price is available –CIF = CFR + Insurance Premium Calculation of Insurance Premium (I)Calculation of Insurance Premium (I) –Based on contract value/invoice value + –A markup （上浮，涨价幅度） (normally 10%) to cover incidental costs （杂费） –Formula: I = CIF x (1+10%) x Premium Rate (R) （保险费率 ） Therefore –CIF = CFR + CIF x (1+10%) x Premium Rate (R) or –CIF = CFR / (1 – 110% x R)

12. 12 Task3Conversion of FOB, CFR & CIF Prices Conversion of FOB to other prices CFR = FOB + F –CIF = (FOB + F) / [1 – (1+markup) x R] Conversion of CFR to other prices –FOB = CFR – F –CIF = CFR / [1 – (1+markup) x R] Conversion of CIF to other prices –FOB = CIF x [1 – (1+markup) x R] – F –CFR = CIF x [1 – (1+markup) x R]

13. 13 Task3 Price including commission Net price （净价，实价） = basic costs + profit Commission –An incentive payment made to the middlepersons for their intermediary services –Expressed in a fixed figure or in a percentage –Examples CFR London GBP100 per doz, including 2% commission USD200 per M/T CIFC2% London CIFC3 Hamburg USD100/set

14. 14 Task3 Price including commission Two ways of calculating commission –based on invoice/contract value C = contract value x C rate –based on FOB or FCA: Under such terms as CFR, CIF, C is calculated before F （ freight) and I( insurance) are deducted Formula: –C = price including C (FOB/FCA) x C rate –Net price = price including C (FOB/FCA) – C = price including C x (1- C rate) –Price including C (FOB/FCA) = net price / (1-C rate)

15. 15 Task3Illustration 1 USD100 per m/t CFRC5%, C? –C = 100 x 5% = USD5 USD100 per m/t CFRC5%, CFR net? –CFR net price = 100-5 = USD95 USD 100 per m/t Net CFR, CFRC5%? –CFRC5% = 100/(1-5%) = USD105.26

16. 16 Task3 USD200 per case FOB Xiamen, freight USD22 per case, CFRC5? CFRC5 = (200+22)/(1-5%) = USD233.68 USD50 per m/t CIF Washington, I rate 1.05%, markup 10%, CFRC5? CFRC5 = (50-50x110%x1.05%) / (1-5%) = USD52.02

17. 17 Task3Illustration 1 USD 150 per barrel FOB Xiamen, I rate 1%, markup 10%, freight 15, CIFC3? –Solution 1 –CIF = (FOB + F)/(1- U x R) = (150 + 15)/(1- 110%x1%) = USD166.835 CIFC3 = CIF / (1-C%) = 166.835 / (1- 3%) = USD171.99 –Solutions 2 I = CIF x U x R = (FOB + F + I) x (1+markup)x R I = (FOB + F ) x 110%x R 1 – U x R = (150 + 15) x 110% x 1% = USD1.835 1- 110% x 1% CIFC3 = CIF / (1- C%) = (FOB + F + I) / (1- C%) = (150 + 15 + 1.835) / ( 1-3%) = USD171.99

18. 18 Task3Illustration 2 Suppose your company made an offer at USD1200 per metric ton FOB Xiamen. Your customer counter-offered and asked you to offer CIF Melbourne price. Suppose freight per metric ton is USD 130, markup 10% and insurance rate 1%, what would CIF Melbourne be? –CIF –=(FOB + F) / (1- U x R) = (1200+130) / (1- 110%x1 ％） = USD1344.80

19. 19 Task3 Supposing… –Your offer: USD3000 per metric ton CIF Singapore –Counter-offer: USD2880 per metric ton FOB China port –Freight from China port to Singapore: USD89 –Insurance premium rate: 0.95%, markup: 10% Question: will you accept the counter offer? Solution –Convert CIF to FOB FOB = CIF – F – I = 3000 – 89 – 3000x110%x0.95% = USD2879.65 FOB = CIF x (1 – UxR) –F = 3000 x (1–110%x0.95%) – 89 = USD2879.65 –Convert FOB to CIF CIF = (FOB + F) / (1 – U x R) = (2880 + 89) / (1 – 0.95%x 110%) = USD3000.35 –YES

20. 20 Task3 计算 1 1 、 我国某出口商品报价为： USD300 Per Set CFR C3 ％ NEWYORK 。试计算 CFR 净价和佣金各为多少？如对方要求将 佣金增加到 5 ％， 我方同意，但出口净收 入不变。试问 CFRC5 ％应如何报价？

21. 21 Task3 计算 1 佣金 = 含佣价 X 佣金率 =300 X3%=USD.9 净价 = 含佣价 - 佣金 =300-9=291 含佣价 = 净价 /(1-5%)=306.32

22. 22 Task3 计算 2 2 、 某商品每公吨 CIF 热那亚￡ 500, 设运 费每公吨￡ 45, 投保加一成, 保险费率为 8 ‰, 求 FOB 价 FOB = CIF x [1 – (1+markup) x R] – F =500*(1-110%*0.8%)-45=495.6-45=450.6

23. 23 Task3Conversion of Price Note: markup: percentage of the contract value R: Insurance premium rate Factory price Fac price+ All other costs ＋ Expected profit Exchange rate FOB price FOBC%/D% price CFR price CFRC%/D% price CIF price FOB 1-C%/D% CFR 1-C%/D% CFR 1- (1+markup)xR + Freight + Insurance + Ocean Freight CIF 1-C%/D% CIFC%/D% price

24. 24 Task3Price with discount Discount –a certain percent of price reduction, a special favor given by the exporter to the importer Reasons for discounting: –To increase market competitiveness –To get rid of stocked goods –As a motivator for S to introduce goods into new markets –As a compensation for settling disputes or previous orders

25. 25 Task3 Price with discount Discount expressed in % or fixed number –USD200 per M/T CIF New York less 3% discount –CIFD3 New York GBP200 per M/T –EUR200 per unit CIF London including 1% discount Calculation –Based on the contract value –Discount = contract price x discount rate –Actual price = contract price – discount = contract price x ( 1- discount rate )

26. 26 Task3 增值税和退税 VAT :value added tax, 商品进入流通环节 所发生的增值额为课税对象的一种流转税 。 Tax rebate 国家鼓励出口，为了提高本国 商品竞争力，对出口商品采取按增值税款 或按一定比例退还的做法。

27. 27 Task3Case 购货成本 CNY 200, including 17% VAT, rebate rate 9%, Actual cost? =[ 购货成本 /(1+ 增值税率） ] * （ 1+ 增值税率 - 出口退税率 ) =CNY184.6

28. 28 一） ＦＯＢ １、ＦＯＢ＝出口总成本 + 预期利润 = （实际进货成本 + 国内费用） + 预期利润 = （进货成本 - 出口退税收入 + 国内费用） + 预期利润 2 、出口退税收入 = 进货成本 * 退税率 /(1+ 增值税） 二）净价之间的换算 1 、 CIF=CFR+ 保险费 =FOB+ 运费 + 保险费 CIF=CFR/ （ 1- 投保加成 * 保险费率） 2 、 CIP=CPT+ 保险费 =FCA+ 运费 + 保险费 CIP=CPT/ （ 1- 投保加成 * 保险费率） Summary

29. 29 Summary 二）净价与含佣价之间的换算 含佣价＝净价 / （ 1 －佣金率） 三）折扣价格 折扣 = 合同价 x 折扣率 四）出口指标 1 、出口换汇成本 = 出口商品总成本 /FOB 出口 外汇净收入 2 、出口盈亏率 = 出口商品盈亏额 / 出口总成本 *100%

30. 30 Task 4 Task 4 Understanding prices

31. 31 task 4Understanding the price Export revenue (FOB) – Export cost (FOB) Export Cost (FOB) Export Profit Margin = X 100% Export profit margin –a ratio for measuring profitability of an export transaction –Standing for how much profit can be generated for every unit of currency in cost –Formula as follows: Note: Figures calculated in exporter’s local currency Export revenue and cost excluding overseas transport charges and insurance cost export revenue > export cost, profitable; export revenue <export cost, unprofitable

32. 32 task 4Chinese Equivalent 出口销售人民币净收入 - 出口总成本 出口总成本 出口商品 盈亏率 = X 100%

33. 33 task 4Case 上海新诚外贸公司 出口 美国 USD280.00 per dozen CIF NEW YORK 300 dozens Freight USD10 per dozen, insurance USD1.0 per dozen raw material purchasing CNY 300,000.00 含 17% 的增 值税 生产加工费 CNY200,000, 加工损耗费 2% ， 管理费用 10% ， 仓储费用 6% ， 退税率 12% ， USD 1=CNY 8.2 计算出口盈亏率. task 4

34. 34 task 4Process 1 、 export revenue = 280*300*8.2=CNY 688,800 2 、 export cost =300,000+200,000+300,000*(2%+10%+^%)- 300,000/(1+17%) *12% =CNY523,231 3 、 Export revenue-F- R –Export cost = 688,800-(3000+300)* 8.2 -523,231 =CNY138 ， 509 4 、 EPM 138 ， 509/523 ， 231 =26%

35. 35 task 4Understanding the price Export cost in Local Currency Export Revenue in Foreign Currency (FOB) ECFFE = Export cost for foreign exchange (ECFFE) –Interpreting profitability with currency factor –Sanding for how many units of local currency the exporter should pay to make one unit of foreign currency –Formula as follows: Note: The less the ECFFE is, the more profit the exporter can make See Example on Page 65

36. 36 task 4Chinese Equivalent 出口商品换汇成本 = 出口总成本（人民币） / 出口销售外汇净收入（ 美元）

37. 37 task 4Case 上海新诚外贸公司 出口 美国 USD280.00 per dozen CIF NEW YORK 300 dozens Freight USD10 per dozen, insurance USD1.0 per dozen raw material purchasing CNY 300,000.00 含 17% 的增 值税 生产加工费 CNY200,000, 加工损耗费 2% ， 管理费用 10% ， 仓储费用 6% ， 退税率 12% ， USD 1=CNY 8.2 计算出口换汇成本

38. 38 Process 1 、 export revenue = 280*300*8.2=CNY 688,800 2 、 export cost =300,000+200,000+300,000*(2%+10%+^%)- 300,000/(1+17%) *12% =CNY523,231 3 、 Export revenue-F- R –Export cost = 688,800-(3000+300)* 8.2 -523,231 =CNY138 ， 509 4 、 138 ， 509/523 ， 231 =26%

39. 39 task 4 1 、 Revenue= USD84000-USD3000 – USD300 =USD 80,700 COST= CNY523,231 6.5CNY/USD

40. 40 task 4Wording of Prices in Contract HKD 100 per doz EXW GUANGZHOU (5 Beijing Road) CAD 200 per gr FCA Toronto (Airport) EUR 150 per pr FOB Shanghai JPY 600 per lb FAS Tokyo AUD 120 per pc CFR Sydney 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) USD 250 per set Delivered at Sino-Mongolian Frontier (Erlian)

41. 41 Task 5 Task 5 Related Key English Terms

42. 42 key terms allocation cost 分摊成本 fixed cost 固定成本 overhead 管理经费 insurance premium 保险费 tariff 关税 outlet 甩卖, 工厂清仓 Factory price 出厂价 Consumption power 消费能力 Per capita income 个人平均收入 segment 市场细分

43. 43 key terms Production cost 生产成本 Marketing strategy 营销策略 Sales cost 销售成本 Delivery cost 运送成本 Financing cost 融资成本 anticipated profit 预期利润 terms of payment 付款方式 cost-plus pricing 成本加成定价法 marginal cost pricing 边际成本定价法 buyer based pricing 买方价值定价法 competition based pricing 竞争定价法

44. 44 key terms.e xport profit margin28 出口盈亏率 export cost for foreign exchang 出口换汇成本 break-even point 盈亏平衡点 Local currency 本币 markup 加价，上浮 Face value 票面值，表面价值 premium rate 保险率 net price 净价 commission 佣金 discount 折扣

45. 45 key terms Exchange rate 汇率 Final price 最终价格 total price 总价 unfixed price 非固定价 money of account 计价货币 initial pric 最初价格 Money of payment 支付货币 Unit price 单价 Price adjustment clause 价格调整条款 Price including commission 含佣价 rebate 减免、退款 wage index 工资指数