How to Prepare a Price Quotation for Buyers

i) FOB (Free On Board):

It is the value of the product which is claimed/ fixed without the cost of transportation of the goods.

ii) C & F Value (Cost & Freight):

It is the value of the product which is claimed/ fixed including the cost of transportation of the goods.

**C&F +FOB:

In this case ship or air freight is carried by the exporter quotes prices higher then FOB price.

iii) CIF (Cost, Insurance & Freight):

It is the value of the product which is fixed including the cost of transportation and insurance.

In this case in addition to the bearing of freight, the cost of insurance is also paid by the exporter. The exporter while quoting CIF price quotes much higher than CIF value.

**C&F + Insurance:

CIF (Insurance cost is always 1-1.5% of total manufacturing cost)