Some hidden costs, if ignored when calculating prices, will cause considerable losses, especially for those businesses with small transaction volumes or thin profits, which may turn profits into losses if you are not careful.
The first of these cost traps is bank fees. Foreign banks and domestic banks will deduct handling fees from the funds remitted from abroad. In other words, although a foreign customer remits you $1,000, it is likely to become $950 in your hands. If your expected profit is 3%, or $30, the bank handling fee alone will make your profit go down the drain. Therefore, in order to avoid similar situations, you must first understand the handling fees charged by your domestic bank for overseas remittances. In addition, foreign customers should bear the foreign bank handling fees themselves when remitting money, otherwise this fee should be included in the cost. The bank handling fees for letter of credit operations are even higher, sometimes reaching hundreds of dollars in normal operation.
In addition, the most common extra-budgetary expenses are terminal operations. There are many types of terminal miscellaneous fees, and it is ambiguous whether they should be borne by the shipper or the consignee. Under FOB, the importer is responsible for booking, while under CNF and CIF, the exporter is responsible for booking. Freight companies that accept bookings are often only responsible to the booker for the sake of attracting business, and pass the costs on to the other party. For us exporters, when operating FOB, if it is the first time to cooperate with a freight company, it is necessary to check the relevant costs in advance. If it is found that the cost sharing is obviously unfair, we will contact the foreign customer to negotiate and request an adjustment.