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FOB pricing

    • 1 posts
    May 21, 2013 8:59 AM EDT

    Hi DayDreamer,

    Here's  the formula  and how to calculate fob price


    • 47 posts
    February 18, 2008 8:15 AM EST
    Hello Entrepreneurs,
    Does anyone know what a FOB price is?  Let`s say my product has a FOB price of $5.00 (U.S. Dollars).  What would the total, complete production price be?  Is there a formula to calculate this?
    • 45 posts
    February 18, 2008 1:01 PM EST
    From what I know, FOB means Free on Board and is added by Destination or Origin. FOB Destination would mean that your price of $5.00 includes shipping to the location of acceptance by the customer. It`s your responsibility until it is in the hands of the acceptor. FOB Origin would then mean that $5.00 price does not include pricing and the customer could utlize any shipper and it be their responsibility as soon as it leaves your door.
    That is a very basic concept of FOB. I hope it helps!

    Jamie Dufrene
    Rajin Enterprises

    • 8 posts
    January 18, 2012 12:57 AM EST

    This pricing term indicates that the cost of the goods, including all transportation and insurance costs from the manufacturer to the port of departure, as well as the costs of loading the vessel are readfiled in the quoted price.This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.