Problem
The Refrex company is dedicated to selling refrigeration equipment, has an offer from a new client from the Middle East. Coincidentally, the company had some extra inventory that it planned to replenish, so it decides to take a chance. Refrex is a Mexican company that has never exported, so it needs help with some terms.
The following information is known:
The price that the company gives to its domestic customers who pick up the product at its plant is 350 USD.
The cost of loading maneuvers is 100 USD for each container.
The freight for transportation from the plant to the seaport is 750 USD.
International ocean freight and insurance is $3,500 to the Middle East.
It is estimated that the product pays 15% of the customs value* of taxes, fees and other customs expenses for importing into the target country.
The freight from the port to the client's warehouse is 800 USD.
The container has capacity for 200 teams.
Customs value refers to the value of the merchandise plus all additional expenses incurred until it reaches the customs office of entry of the destination country.
Answer the questions below and justify your answers:
• What do you think would be the prices that should be given to the client based on their request?
• What do you think would be the best way to transport the company's merchandise to the Middle East?