What are the costs involved in exporting mobile phone accessory goods to Nigeria.

Question posted by Anthony Hamilton, on behalf of Anthony Hamilton in HA3

I am exploring the possibilities of exporting a range of products to compliment the mobile phone, tablet industry which continues to grow.

I am looking for a layman's explanation of the export process and the logic that goes into determine the price to pitch at potential wholesale purchasers.

I appreciate that
(a) for wholesalers it will be necessary to have a pricing module based on a sliding scale with quantity purchased being the critical factor.
(b) wholesale price needs to be priced so as to ensure
- I as agent make a margin
- the wholesaler makes margin when selling to retail buyers
- the retailers make a margin when selling to the general public consumers

I have a retail price in mind ; is there a typical formula which I can refer in order to work backwards to determine indicative prices at each stage of the product life cycle. Appreciate it may change but at least will provide me with a benchmark to work with.

Your thoughts will be much appreciated.

Regards
Anthony

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Hello Anthony,
I have just presented the Open to Export Bootcamp YouTube webinar concerning pricing for export - you might find it helpful when thinking about pricing. It is on the Open to Export web site too.

You also need to establish the tariff code for the products you intend to export - see https://www.gov.uk/trade-tariff

You can then see the import requirements, import duty and taxes applicable on this web site http://madb.europa.eu/madb/datasetPreviewFormATpubli.htm?datacat_id=AT&from=publi

The origin of the products may also make a difference to the import duty to be paid.

You also need to decide your terms of delivery (not sale) so that you build up the correct price for your product - INCOterms are usually used for this. See http://en.wikipedia.org/wiki/Incoterms I would strongly recommend you do not use Ex Wks or DDP.

If you would like further information please contact me directly or via open to export. yuou may also find my website of use.
Regards,
Susan
enquiries@morley-consulting.co.uk
www.morley-consulting.co.uk

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Uche Akali, on behalf of Hallmark Solicitors in HU1.

Anthony

There are several aspects to your enquiry and we would need to break them down somewhat in order to do justice to it. Also the mode in which you wish to trade will also be hugely influence our response. For instance, it would be helpful to know if you have sourced a market for your goods. Do you require any assistance in sourcing wholesalers etc? Will you wish to incorporate in Nigeria or just simply supply your wholesalers from the UK?

Further appointing a good local partner in Nigeria will be one the keys to your success.

If you think it may be useful, we can put you in touch with our people on the ground who will be able to talk you through the whole process so that you can make an informed decision as to how or whether you wish to proceed.

Regards

Uche Akali

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Darren Thomas, on behalf of Simpex Freight Management in LS15.

Good afternoon.

I would be happy to discuss this process in much further detail with you, as there are many factors and processes to consider especially shipping goods to Nigeria.

From experience where new start ups get things wrong are the terms of sale INCO TERMS.

If you want to make as much profit as possible on your good understanding these terms are vitally important.

For your guidance getting the Consignee/Buyer to pay all destination charges would help you immensely - INCO TERM is CFR

If you have any further questions please do not hesitate to contact me.

Best regards.

Darren Thomas - Business Development Manager
Tel: 0113 3970 461
Mob: 07979140007
Email: darren.thomas@simpexfm.com

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JIM GREEN, on behalf of SPI FREIGHT in TW17.

Good morning

There are many factors which will influence the final cost of a shipment both to you and ultimately the wholesaler / retailers

These include from a transport perspective

# Incoterms
# Mode of transport
# Weight
# Dimensions
# Destination
# Taxes / Duty (albeit not paid by you?)
# Exchange rates
# Insurance
# Packing / packaging
# Frequency
# Licences
# Commodity codes

It is possible to eventually get to a rate per Kilo (by product) but a number of basic questions will need to be answered first

Feel fre to contact me as it may be possible to provide indicative rates given certain assumptions

Best regards

JIM GREEN
Director of Sales
SPI Freight Limited
TW17 8BA

Mobile 07880 387914
E-Mail jimgreen@sp-international.co.uk
www.sp-international.co.uk

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PETER BRIALEY, on behalf of STI GLOBAL LOGISTICS LTD in SS13.

Good Day Anthony,

Further to your above questions, you should note that most of the above comments are quite correct and very important especially with all the scams currently going on in Nigeria. There is another and Important factor to be considered as well and that is the Form M requirement prior to export. You will need to supply this number to your appointed freight forwarder prior to export or even having your booking accepted. The Form M is basically in laymens terms a certificate to say that the buyer has the funds available to cover the costs of the product and charges. As an experienced freight forwarder with weekly departures to all West Africa Ports and with our own agents within Tin Can Island (who's director is the daughter of former UN Secretary Kofi Annan) I don't believe you can have a more safer and secure agency to help you.

Our details are below, we will be pleased to assist you further with any enquiry and rate requirements.

Ian Robery
Business Development Manager
STI Global Logistics Ltd
Unit 1 Lords Court
Cricketers Way
Basildon Essex SS13 1SS
Tel: +44 (0)1268 289653
Mobile: +44 (0)7554 117585
Fax: +44 (0)1268 289649
Email: irobery@stigl.co.uk
Website: www.stigl.co.uk

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