How To Calculate CIF & FOB Costs On The Move
If you work in the shipping and logistics sector, you’ll probably find that you frequently have to calculate the cost, insurance and freight (CIF) and Free On Board (FOB) prices when you’re on the move and trying to make accurate negotiations.
Both international shipping agreements, FOB and CIF costs are used in the transportation of goods between a buyer and seller. Previously, calculating these may have meant spending extensive time working out these figures. However, thanks to advancements in business automation, it’s become extremely easy to instantly get the figures you need.
CIF (Cost, Insurance, Freight)
The CIF price is how much goods cost at the point where they’re being delivered to the border of the importing country. This cost is commonly used for larger deliveries shipped overseas. Under the CIF agreement, the buyer holds full responsibility for the goods once they reach the destination port meaning the buyer may become liable for any extra costs. Therefore the CIF figure is the price before any import duties, taxes, or transport margins have been added.
FOB (Free on Board)
Under FOB contracts, the seller assumes responsibility until the delivery is loaded onto the shipping vessel. The buyer only assumes full responsibility and liability once the shipping voyage begins, this can include extra insurance and transport fees.
FOB shipping contracts are considered more flexible, while CIF contracts are often more expensive, with the possibility that sellers will add additional fees to the contract to make a larger profit.
How ImportBuyer can help…
At Blue Alligator, we introduced our ImportBuyer tool as the perfect companion for all your buying trips. The ImportBuyer platform is an essential tool for any buyer who’s looking to calculate CIF and FOB costs on the go.
With the ability to link your back-office system to your ImportBuyer dashboard, you can now sell on the same day and increase your sales. ImportBuyer also uses a similar integration to Blue Alligator’s sales rep app, SalesPresenter, meaning your entire selling and buyer system works seamlessly together to reach the best result for your business.
We know that when you’re importing and delivering goods, you need access to the most up-to-date costs and product information to make the correct business decisions. With ImportBuyer, you can collate new product and supplier information instantly and get all the facts and figures you need on the move. The ImportBuyer tool also has offline functionality, so no matter where you are, you can ensure you’re making the best buying and selling decisions for your business.
ImportBuyer makes it easy for any buyer to get precise and accurate insights into opposing supplier prices, so they know they’re always getting the best deals when it comes to FOB and CIF costs.
Raise purchase orders quickly
When you know you’ve got a good deal, you’ll want to raise the purchase order and get it back to the office quickly. With ImportBuyer, you can do just that. Checking back to see your previous purchases and history all in one place, ImportBuyer can help with future negotiations to settle on a fair final price.
If you’re interested to hear more about how ImportBuyer could work for your buying team, get in touch with a member of our team today.