Import Pricing with Currency Conversion
When you buy from an overseas supplier and sell in your own currency, the exchange rate is part of the price. Price with an old rate, or forget a cost along the way, and you find the loss only after the client has approved.
Step 1: the supplier's price, in their currency
Start from the supplier's price in the currency you will pay in: euros, pounds or another currency. Check what it includes: packing, shipping to the port, insurance.
Step 2: convert at an up-to-date rate
Convert at today's rate, not the one you remember from last month. In this example we use 1.08 US dollars per euro - an example rate only.
An order of €1,800 is $1,944 at that rate.
Step 3: add every cost along the way
- International freight and insurance.
- Customs duties and import taxes, depending on the product.
- Customs brokerage and port release.
- Local delivery to your warehouse or to the client.
- Bank transfer and conversion fees.
Step 4: a margin for rate changes
The rate can move between the day you quote and the day you pay the supplier. Many businesses add a small safety margin, or shorten the quote's validity when the market is volatile.
Step 5: your profit, and the quote
Add your profit only after all the costs. In the quote, state the price in your selling currency, whether tax is included, and how long the quote is valid.
How TEKANGO helps
TEKANGO's currency converter shows the up-to-date rate from its source, with the time of the last update.
After the calculation, build the quote in TEKANGO in your account's currency, with a validity date, and send it to your client.