Tuesday, May 30, 2023
Influence of purchase cost on product input calculation
The purchase cost is included in the entry price of the product and may relate to one or more realizations of the purchase.
Delivery is the primary factor in determining the cost of a purchase. You need to know how much it costs per unit for the package to reach your customer's door. Delivery costs largely depend on the delivery zones, box dimensions, and delivery speed, but can be reduced by storing stock closer to the end customer and getting better carrier prices.
The purchase cost simply represents the total cost you have to pay to get the product from the supplier to your warehouse/store.
To get to this price, you will have to add shipping and transportation costs, commissions, customs, warehousing, insurance, and all other costs incurred when purchasing the product.
All the money you paid to deliver the shipment to your location is your total purchase cost.
Automating the calculation of purchase costs is necessary in today's global economy. If your business is involved in international trade, importing goods from other countries should increase your profitability, not harm it. It is crucial that you get the right price if you want to get involved in global trade; no one wants to lose customers (due to too high-cost estimates) or earnings (too low-cost estimates).