FOB pricing

dayDreamerdayDreamer subscriber Posts: 40 Bronze Level Member
edited February 2008 in Grab Bag
Hello Entrepreneurs,
Does anyone know what a FOB price is?  Let`s say my product has a FOB price of $5.00 (U.S. Dollars).  What would the total, complete production price be?  Is there a formula to calculate this?


  • rajinenterprisesrajinenterprises subscriber Posts: 3
    From what I know, FOB means Free on Board and is added by Destination or Origin. FOB Destination would mean that your price of $5.00 includes shipping to the location of acceptance by the customer. It`s your responsibility until it is in the hands of the acceptor. FOB Origin would then mean that $5.00 price does not include pricing and the customer could utlize any shipper and it be their responsibility as soon as it leaves your door.
    That is a very basic concept of FOB. I hope it helps!
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