🌍 Why Africa Is the Next Big Market for Indian Exporters (2025 Insight)
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Exporting in India is a profitable venture, however, it should be calculated correctly to get your profits. There are too many companies that rush into shipping without knowing the hidden costing, and thus they do not make profits, but rather incur losses.
In this guide, we are going to simplify the profit formula, significant cost considerations, and a sample calculator of your next export shipment.
Step 1: Know Your Total Product Cost (TPC)
Yours TPC:
Example: Let us say that you sell 1 unit of herbal tea at 50 (factory price), then you incur an expenditure of 10 (on packaging and labeling), then TPC = 60.
Step 2: Add Export-Related Costs
These include:
Example: You logistics cost can be 12,000 = 12 per unit, as it is given 1,000 units.
Step 3: Calculate Your Export Selling Price (ESP)
This will be the ultimate cost that your buyer will incur.
Hint: Select terms of pricing that divides shipping cost with the buyer to enhance profits.
Assuming that your ESP = 120/ unit, and total cost (TPC + Export Costs) = 72, then:
Unit profit = 48
Total Profit = 48(Rs) x 1000 = 48000(Rs)
Export Profit Template
Profit = ESP - [product Cost + export Costs]
The Important Liabilities to be Wary of Hidden Charges
Pro Tips to Make More Profits on Exports
Final Thoughts
An export costing mistake that is not very big can easily make a good deal an unprofitable one. Apply the above-mentioned profit calculator approach and make sure you seek quotations of various vendors every time you are about to finalize shipping.
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Published by VSK Global Trade – Expert Support for Indian Exporters.
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