Buy building materials from China – Whats the price difference compare to local market?
#1 Factory Exw price
#2 Wholesaler selling profit
#3 Export handling cost
#4 Sea freight
#5 Import tax
#6 Local market selling profit
#7 Local market warehousing cost
#8 Local market labor cost
Now you can clearly see that how much cost for one items from a factory in China and how much cost for buying the items in local.
Lets calculate all the cost again. The toilet from the factory is US$50. Then the local market selling price is about US$100, so its about double of the original cost. The cost after import tax is US$64, then the local seller’s cost is about US$36 which is about 36%. Which means if you buy from China directly then you can save about 36% than buying from local market.
If you are buying building materials for whole house, then you might buy a total amount like US$12,000. If you buy from China directly then you might save up to 36% which is about US$12,000*36%=US$4320. So you can save about this amount. You can see if you would prefer to buy from China directly or not.
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