Product price estimation and costing is a key part to the already tough job of outsourcing. Many people know developing a product cost estimation can often be tricky. The product cost estimation method is similar to product costing except for one small difference: while product costing is dedicated to completely new products, cost estimates only work with existing products that factories already make. We believe all cost estimations should check three main aspects: costs from alternative factories, specialized costing methods for a product break-down and prices not related to the product like logistics.
Firstly, comparing prices during the estimation and costing process provides you with a clear understanding of your market product cost. Secondly, checking the production information against what the factory estimates gives an accurate understanding of the real product cost. Thirdly, getting the product from the factory to your warehouse requires understanding of logistics and customs processes. These three parts give you a realistic product cost estimation that matches your plans. That’s why relying on only a few supplier quotations is a bad idea.
The bottom line is key to the success of your project. A good understanding of the costs will give you stronger negotiating power to get the most competitive pricing. Use our expertise to create a project cost estimation that meets your budget. Learn what prices for a given product are truly realistic.
Our vast network of suppliers allows us to provide you with a clear cost breakdown. We will walk you through the entire cost estimation process. We cover most costs in your white label or sourcing project. The manufacturing product cost estimation includes consideration of non-price aspects such as expected shipping effort, production turnaround time, supplier quality, and potential customization. Intrepid Sourcing’s cost estimation service lets your company accurately gauge the product cost.