The Math of Profit
Buying a slab for $5.00/sqft in India doesn't mean it costs you $5.00. Here is the formula successful wholesalers use.
The Formula
Landed Cost = FOB Price + Ocean Freight + Insurance + Import Duty + Port Charges (THC) + Local Trucking
Example Breakdown (20ft Container to Texas)
- FOB Value: $8,000
- Ocean Freight: $3,500 (Variable)
- Duty (USA): ~3.5% ($280)
- Merchandise Processing Fee (MPF): $500
- Harbor Maintenance Fee (HMF): $100
- Trucking to Warehouse: $600
Total Cost: $12,980.
If the container has 3,000 sqft, your True Cost is $4.32/sqft.
At Ruvello, we provide CIF quotes so you know the cost up to your port, removing 80% of this math.
#Finance#Costing#Profit#Business
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