FOB pricing

dayDreamer
Posts: 0
Joined: Wed Oct 03, 2012 10:39 am

FOB pricing

Postby dayDreamer » Mon Feb 18, 2008 6:15 pm

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?
 
Thanks,
DayDreamer

rajinenterprises
Posts: 0
Joined: Sat Dec 09, 2006 5:00 am

RE: FOB pricing

Postby rajinenterprises » Mon Feb 18, 2008 11:01 pm

DayDreamer,
 
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


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