Question
You want to buy (green) beans at no more than $1.40/lb final cost to San Francisco (this is your target landed cost however you will
You want to buy (green) beans at no more than $1.40/lb final cost to San Francisco (this is your target landed cost however you will be purchasing under an Incoterm other than DDP so your price must equate to a final cost of no more than $1.40)
Looking for delivery of 2,000 lbs/month, minimum of 1,000 lbs/mo.
Approximate Transport/insurance costs: from Mexico $0.04 - $0.07/lb ; from Central America - $0.06 - 0.10/lb; from Vietnam - $0.11 - $0.16/lb; from Kenya - $0.14-0.19/lb
US Import Duties: From Mexico 0% ; Central America 5% of FOB price; From Vietnam and Kenya 10% of FOB price.
This below is quotation from seller
As an alternative to the DAP that has been requested, we hereby quote as follows: Quantity in lbs Description Price/lb Total 1,500
Certified organic, award- winning shade-grown coffee beans.
$0.80 $1,200.00
______________________________________________________________________________ Packing Cost ... $75.00 Transportation to Port ... $75.00 Est. freight and insurance .... $450.00 Kenyan Export Documents ..... $60.00 Est. TOTAL CIF United States San Francisco Port.... $1,860.00 ______________________________________________________________________________ Delivery by ship Packing Individually package 1 lb bags to be packed in cardboard boxes, 20 per box Payment Irrevocable Letter of Credit payable at 60 days sight Quality Control Before being filled into the 1 lb bags, our coffee beans undergo a thorough inspection to ensure beans are of the utmost quality. Packaging is done in small batches, in which they are tested to confirm the right conditions have been maintained to foster the best flavor and qualities of the coffee bean. ______________________________________________________________________________ PLEASE NOTE: 1. All prices quoted are in U.S. Dollars 2. Prices quoted are only valid for 30 days from 12/11/2023 3. Inland transportation following arrival at the port of destination is to be organized and accounted for by the buyer
What should we fix to make great contract? and what should we ask about their quotation?
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