Costing

Dialogue 1

A: How much will our order from your factory be?

B: I'll be happy to get back to you with an estimate in the next few days.

A: I'm afraid I can't wait that long. Can your office at least provide me with a ballpark figure?

B: Well, I would need an idea of how large your order would be. About how many units would you need?

A: Just give me an estimated figure for an order of 100 units.

A: Please give me a few minute to calculate.... Our asking price should be about $100 per unit with an order of 100. Is that price acceptable to you?

B: Your estimated is seems a little high to me, we're willing to pay $80 per unit.

A: Would an order of only 100 units, it'll be difficult to work within that kind of budget. Maybe if you were ordering 500 units or more units, we might be able to work something out.

Dialogue 2

A: How much do you pay wholesale for your products?

B: We have a few different wholesale vendors, so our cost varies a bit over the fiscal year. But the difference is miniscule, a fluctuation of about 0.2%.

A: That must impact your bottom line at least a little bit, doesn't it? After all, your sticker price is pretty much set in stone. How much do they go for retail?

B: Retail price is 29.95 per unit. We take into consideration changes in supply cost when figuring this price.

A: Is that including tax?

B: No, that's the price before tax. The tax rate is varies from different marketing areas, so it is difficult for us to figure in.

A：How much is your profit margin then?

B: Our profit margin is in the neighborhood of 20%.