Justin
Before comparing a supplier’s unit price with a retail selling price, build a budget that separates confirmed costs from missing ones. The useful output is a list of what the order would cost under your assumptions and which quotations you still need. A claimed gross margin is not a substitute for that record.
Set the example order
Assume 1,000 units with a hypothetical product value of $5,000. Under Chineseyiwu’s published rule, procurement on product value above $2,000 is 3%, so the procurement service fee in this illustration is $150. The remaining figures are arbitrary planning inputs, not available service rates.
| Budget line | Illustrative amount (USD) | What to verify for a real order |
|---|---|---|
| Products: 1,000 units | $5,000 | Specification, quantity and what the supplier price includes. |
| Procurement fee: 3% × $5,000 | $150 | Final product-value basis and procurement scope. |
| Samples | $120 | Sample quantity, revisions and sample freight. |
| Inspection | $180 | Location, checks, sampling, reporting and any travel charges. |
| International freight | $650 | Cargo measurements, route, delivery scope and exclusions. |
| Destination handling | $250 | The receiving and handling charges applicable to your shipment. |
| Known-cost subtotal in this illustration | $6,350 | Still excludes unquoted duties, taxes and other costs. |
The illustrated subtotal is $6.35 per unit before unquoted costs: $6,350 divided by 1,000 units. It is not a final landed cost. If a line is unquoted, keep it marked as unknown instead of assuming zero. Avoid adding a charge twice if it is already included elsewhere in a quote.
Separate a first-order budget from a repeat-order budget
Tooling, design work, artwork setup and sample development may have a different treatment from recurring product or shipping costs. Ask who owns any tooling or artwork and what a repeat order would require. Keep the one-off amounts visible in the first-order budget rather than hiding them inside an unexplained unit figure.
Why this worksheet does not establish profit
A selling price alone does not establish gross or net margin. You still need the applicable accounting treatment, destination costs and selling expenses. Returns, platform charges, fulfilment, storage, payment charges and advertising can change the result. Use actual records for those lines and have your finance adviser review the treatment where necessary.
For operational planning, keep a cost log with the quote reference, currency, validity, inclusion and responsible party for every line. See the landed-cost guide for further questions to ask before approving an order.
Approve the evidence at each stage
- Before sourcing: a product brief and a clearly separated service quote.
- Before production: the approved specification, sample reference and change record.
- Before dispatch: agreed inspection findings and confirmed packed-cargo details.
- Before finalising the budget: actual supplier, service, freight and destination invoices.
Discuss your actual order
Chineseyiwu supports product sourcing, factory and buyer-appointed inspection, and international shipping enquiries. Confirm the scope and separate charges for the work you need.