how can I find an original price for an item made in china?

Question

e.g. I bought a pair of runners in Australia and I paid for it $100AUS.Runners are made in China, how can I find out how much they acctualy cost the company to have them made and ship them to Australia?

Answer 1

Forgive me, for I am an American who doesn't speak Australian. I don't know what a "runner" is, but since I lived in China for 10 years and am in the profession of manufacturing products in China I think I can answer your question.

It is not clear from your question whether or not you know who the manufacturer is. If you do, the easiest way to find out the cost of the runners is to email the manufacturer, tell them you're a big runner distributor and ask them for a price quote on 10,000 runners, FOB China. They will quote you a wholesale price. Take 85-90% of the price they quote you and assume that is approximately the cost to the factory to produce the runners.

If you do NOT know who the manufacturer is, go to Alibaba.com, search for runner manufacturers in China, email them and ask them for quotes. Always ask for quotes on at least 10,000 units and FOB China ("free on board"; means you want the price not including shipping). You can estimate that their quote has at least a 10% or 15% GPM (gross profit margin) built in. Do the math to get the cost to the manufacturer.

By the way, when I searched for "runners" on Alibaba, the first page showed door slides, some fabric tablecloth things, and running shoes.

You can also use the "quick and dirty" method to guesstimate the cost. Starting with the retail price, we can back into the manufacturer's cost as follows: retailer buys from wholesaler for at MOST half the retail price ($50AUS). Probably more like one-third the retail price, or approximately $33AUS. Wholesaler must make at least 25% GPM, so he buys for approximately $24.75AUS. If 5% of that cost is shipping, and assuming it's duty-free to enter AUS, that's a sell price from the factory to the wholesaler of $23.51AUS. Assuming a 10% GPM for the factory, that's a cost to the factory of approximately $21.16AUS, or about one-fifth the retail price.

The last method to learn the cost is the most difficult. You need to know the cost of materials and labor in China. For example, let's say a runner is made from one yard of silk and one labor hour. You then need to do some research to find out the cost of silk per yard and prevailing labor/machine rates in the market where the runners are produced. Figure approximately $1 per hour for manual labor in China.

Btw, to find out the shipping cost you need to know how the factory packs the runners for shipment (# of runners in a box, # of boxes in a master carton, dimensions and weight of master carton). Then give this info, together with product description, port of export, port of import, and method of shipment (e.g. air or ocean) to a freight forwarder and get a price quote for, say, 100 cartons. Then divide the price by the total number of runners in 100 cartons to get the shipping cost per unit.

Hope this answers your question.

Answer 2

Production cost is normally a trade secret of a manufacturing company. If however, what you mean is how much to buy wholesale from China, go to www.alibaba.com as suggested by first answer, or alternatively, www.globalsources.com and ask for quotes. I think what you mean by runners is running shoes or sports shoes. Use said terms instead of runners. Add transportation costs plus possible taxes and duties and you will have your estimated landed cost.

Answer 3

very virtually each substantial mass marketplace variety is having their products synthetic in China and that they are all respected. the products are bodily made in China yet are under strict supervision and administration via the foreign places international locations which contain the layout. those companies very own the trademark and psychological property of their products which ability the chinese language factories are no longer allowed to repeat or promote them in any respect.