Smart label Procurement Manual: Procurement/buyer on the ground edition
Applicable Objects: brand side procurement, cross-border e-commerce buyers, wholesalers procurement, enterprise collection responsible person
Core Value: read it and you’ll know
Calculate the 2 core formulas (Landed Cost/retail gross margin)
Fill in 3 key forms (cross comparison table/RFQ template/delivery schedule)
Use 4 sets of negotiation tools (tiered pricing/customized bargaining/quality terms/risk response)
Basic Knowledge: volume price = ? (formula + cost breakdown)
1. Core formula card (straight out of the box)
Formula name | Calculation formula | Key tips for purchasing |
EXW factory price ≠ true cost | Real cost = EXW unit price + transportation/customs clearance + tariff + packaging + quality inspection + loss preparation | The quotation must ask“Does EXW contain basic packaging (e.g. neutral boxes) ?” |
Landed Cost | C.I.F. = EXW unit price + sea/air freight + customs clearance + duty + local distribution + QC + 2%-3% loss reserve | Tariffs should be checked in advance against the HS code of the target market (e.g. smart tag HS: 3926909090) |
2. EXW factory price impact factor (purchasing must ask)
Impact factor | Purchasing concerns | Landing |
Chip/function | Bluetooth version (5.0/5.1/5.2) , support for Apple Find My/Google Find My | Make and model of the chip (e.g. Nordic NRF52832) |
Waterproof/materials | Waterproof grade (IPX4/IP67) , shell material (ABS/PC) , process (screen printing/laser) | Mark the waterproof grade when sealing the sample, and request the test report |
Battery solution | Battery Model (CR2032/rechargeable) , brand (Panasonic/NAMFU) , battery life | Battery life ≥6 months.” |
Custom depth | The LOGO/color/packaging is customizable, and the firmware changes the UI | Light customization (LOGO + color box) , cost control |
Certification | Whether the target market certification (CE/FCC/RoHS) has been completed | Certificate + Test Report during validity period |
How Do I use tiered pricing? (volume versus Price + pricing tips)
1. Smart tag tiered pricing example (same configuration)
Number of pcs purchased | EXW unit price (USD/PCS) | Scenarios | Buying action |
100 | 3.50 | Sample testing + small-scale validation | Buy only the public version to avoid the cost of customization |
500 | 2.80 | First small-scale pilot production | Additive base customization (monochrome LOGO) |
1,000 | 2.30 | Regular replenishment | A single order of ≥1K, diluting production costs |
5,000 | 1.80 | Main batch | Sign the quarterly framework and lock in the price |
10,000 | 1.60 | Big ticket item of the year | Suppliers are required to keep core materials on hand to ensure delivery |
2. Price landing techniques (direct use of words)
Types of techniques | Examples of idioms | Scenarios |
Annual rolling amount | “15,000 units in 3 batches (5K/5k/5K) in the first year, please give annual price frame” | Long-term cooperation, locking in low prices |
Delivery in batches | “5k for the first order, 3K per month for the follow-up, can you calculate at the 10K step price?” | Quantity but in batches, reduce financial pressure |
Advance payment for exchange | “If you pay 40% in advance, can you reduce the 5k ladder price from $1.80 to $1.75?” | Cash-rich, looking for a bargain |
Customizing the cost sheet (check the box for purchasing on demand)
Customizations | Unit Price Impact -USD-PCS/pcs) | Delivery impact | Purchasing considerations |
Logo screen printing (Monochrome) | 0.03-0.05 | + 0 days | Provide a clear LOGO vector and confirm the location of the silkscreen |
Laser engraving of the LOGO | 0.08-0.10 | + 1 day | Suitable for dark skins and longer lasting effects |
Spot Color (Pantone) | 0.05-0.20 | + 3-7 days | Confirm pantone color number (e.g. PMS 2593C) to avoid chromatic aberration |
Retail colour boxes (including instructions) | 0.08-0.30 | + 3-10 days | Request to provide color box proofing, confirm the material (white card/Kraft Paper) |
Waterproof upgrade (IPX4→ IP67) | 0.15-0.50 | + 5-12 days | Additional waterproof test report required (soak for 30 minutes) |
Firmware micro-customization (Beep) | 0.05-0.15 | + 2-7 days | Confirm firmware version number and request beta validation |
Trade & logistics options (cost + timeliness)
1. Comparison of incoterms (purchase on demand)
Trade terms | Division of responsibilities (suppliers/purchasing) | Unit price level | Scenarios |
EXW | Supplier: ex-factory delivery; purchase: pickup + Customs Clearance + freight | Lowest | Own Logistics/customs clearance partner |
FOB | Supplier: delivery to port; sourcing: Sea Freight + customs clearance | Medium to low | Sea freight (≥5k) , want to control sea freight costs |
CIF | Supplier: Marine + Insurance; procurement: customs clearance + local distribution | 中 | New to shipping, don’t want to worry about insurance |
DDP | Supplier: all-inclusive door-to-door (customs clearance + taxes + distribution) | Highest | Cross-border e-commerce (Amazon FBA) |
2. Transportation mode choice (Cost & timeliness balance)
Mode of transport | Prescription | Applicable quantity | Unit cost (USD/PCS) | Control Action of purchasing period |
DHL | 3-7 days | ≤800pcs | 0.8-1.5 | Order 2 weeks in advance during Black 5/peak season to avoid 30% hikes in shipping rates |
Air Freight + customs clearance | 7-12 days | 1K-5K | 0.3-0.8 | Request suppliers to provide air waybill number, real-time tracking |
Shipping (LCL) | 20-40 days | ≥3K | 0.1-0.3 | Give yourself a 20-day grace period to avoid running out of stock |
Sea-rail intermodal | 18-30 days | ≥3K (Europe) | 0.15-0.4 | Low timeliness, want to keep costs down |
V. Compliance certification form
Target market | Must-have certification | Time-consuming | Don’t forget about purchasing |
European Union | CE (RED directive) + RoHS | 1-3 weeks | CE + Test Report (radio band included) |
United States | FCC Part 15 + RoHS | 1-3 weeks | FCC ID number (check the FCC website for authenticity) |
United Kingdom | UKCA + RoHS | 1-3 weeks | Make sure the certificate contains the“UKCA” logo (must see after Brexit) |
South-east Asia | Sirim (Malaysia) + RoHS | 2-6 weeks | Small batch can be certified with the public version, the subsequent patch local card |
Horizontal price comparison table (3 suppliers compare template)
Comparison items | SUPPLIERSA | SUPPLIERSB | Vendor C | Purchasing score (1-5) |
EXW unit price (5K/PCS USD) | 1.80 | 1.75 | 1.90 | |
Chip/Bluetooth | Nordic 5.1 | Ti 5.0 | Nordic 5.1 | |
Waterproof grade | IPX6 | IPX4 | IP67 | |
Battery brand/battery life | Panasonic CR2032(Dec) | Domestic CR2032(Sep) | Panasonic CR2032(Dec) | |
Certification coverage | CE/FCC/RoHS | CE/RoHS | CE/FCC/RoHS | |
5K delivery | 20 days | 18 days | 25 days | |
Warranty/DOA rate | December/≤1% | 12 months/≤2% | September/≤1% | |
Payment terms | 30/70T/T | 40/60 t/t | 20/80 t/t | |
Composite score |
Cost & gross profit calculation template
1. Landed Cost
Cost Item | Amount (USD/PCS) | Basis of calculation | Purchase fill in (self-fill) |
Exw unit price (5k ladder) | 1.80 | Vendor quotes | |
Sea freight (5Kpcs split) | 0.18 | Total freight 900 USD, 900/5000 = 0.18 | |
Customs Clearance + incidentals (apportionment) | 0.06 | Customs clearance fee 300 USD 300/5000.0.06 | |
Tariff (by target market) | 0.12 | Tax rate 6.7% , 1.80 × 6.7% ≈0.12 | |
Customization of retail color box | 0.12 | Vendor quotes | |
Third party quality inspection (SGS) | 0.03 | 150 USD, 150/5000.0.03 | |
Allowance (2%) | 0.05 | (1.80.0.18 + 0.06 + 0.12 + 0.03) × 2% ≈0.05 | |
Landed Cost (total) | 2.36 | Add the above items together |
2. Retail gross margin back-tabulation (platform model)
Items | Amount (USD) | Basis of calculation | Purchase fill in (self-fill) |
Target retail price | 24.99 | Pricing with reference to competitive products | |
Platform Commission + payment fee | 3.75 | 24.99 x 15% (Amazon Standard Commission) | |
Warehouse Distribution + advertising fee | 3.00 | Category average | |
Landed Cost | 2.36 | 2.36 | |
Gross profit before tax (unit) | 16.00 | 24.99-3.75-3.00-2.36 = 16.00 | |
Gross margin | 64% | 24.99≈64% |
A library of negotiation techniques (by scene)
1. Price negotiation techniques (quantity + payment)
“We First Order 5K, the follow-up monthly pay 3k, the annual estimated 20,000 + . If the 5k step price can be reduced from 1.80 to 1.75, we can: 1 pay 40% in advance; 2 sign the annual framework to guarantee the follow-up order quantity. In addition, we hope to include monochrome LOGO screen printing, no mark-up, do you think it is possible?”
2. Prosecution and delivery schedule (Milestone Lock)
“This 5K order to catch up with black five stock, delivery must be within 20 days (from the date of the order) . Can you write clearly in the Po: t + 3 days to confirm the preparation of materials, T + 10 days to complete trial production, T + 15 days to complete quality inspection, T + 20 days to ship? If the delay is 1 day, 1% of the order amount deduct the penalty.”
3. Quality assurance jargon (contract terms)
“Mass production needs to be 100% consistent with the sealed sample: 1 Bluetooth connection distance ≥10 m (open environment) ; 2 battery with Panasonic CR2032; 3 appearance scratches ≤2(each ≤1 mm) . Aql 0.65(performance) and AQL 2.5(appearance) are used for acceptance. Nonconforming products will be returned at your expense.”
Delivery Schedule (key node + responsible person)
Key nodes | Typical time | Who is responsible | Control Action of purchasing period | Early warning mechanism (delayed trigger) |
Order + advance payment | 1 day | Buying | Issue water bill after payment, ask supplier to confirm | 24 hours no confirmation, follow up by phone |
Material preparation confirmation | 3 days | Suppliers | Request for a stock list + delivery commitment letter | If not confirmed within 3 days, send an early warning letter |
Sample/pilot run | 7 days | Suppliers | Ask for test report after trial production | Over 7 days, Door-to-door/video verification |
Mass production + quality inspection | 10 days | Suppliers | Arrange sampling by a third party (eg SGS) | 10 days, deduction of liquidated damages |
Shipment + logistics tracking | 2 days | Suppliers | Ask for logistics single number, real-time track check | More than 2 days without shipment, suspension of follow-up orders |
Total Lead Time (5K) | 23 days | Both sides | Set aside a 2-day buffer to avoid missing a sale | If total lead time exceeds 25 days, activate back-up suppliers |
RFQ template (copy to mail/form)
Subject: Smart Tag Purchasing RFQ-XX, Inc. (2024XX month)
Please quote item by item according to the following list. Reply Time: XX/XX/2024
Product configuration: model and make of chip; Bluetooth version; support for Apple Find my; waterproof level; battery make/model/battery life;
Certification: List of existing certificates (with number + validity) ; whether including target market (E. G. European Union-RRB- certification;
Price: Exw Ladder Price (100/500/1K/5k/10K pcs, USD/pcs) ; price with/without item (e.g. LOGO/box/instructions) ;
Custom: LOGO (screen printing/laser) costs; body pantone (such as PMS 2593C) costs; retail color box proofing fee + unit price;
Lead Time: Proofing Time; 5K/10K bulk time; maximum monthly capacity;
Quality inspection: AQL standard; sampling items (e.g. aging/waterproofing) ; whether third party quality inspection is supported
After-sales: Warranty period; DOA rate commitment; RMA process; spare parts percentage;
Payment: the accepted T/T ratio; whether partial shipment + partial payment is supported;
Attachments: Please provide the product specification, certification report, sample photos.
Frequently asked questions (quick check)
Questions | The answer | Further advice |
Q1: Do you want to customize the first order in depth (such as changing the appearance) ? | Not recommended. The first single with“Public + LOGO + Box” light customization, cost ≤ $0.4/pcs, run through sales and then upgrade. | The cost of light customization is ≤20% , the risk is controllable |
Q2: How to judge whether the supplier is stable? | Shipping documents with core material (chip/Battery) suppliers. | On-the-spot investigation when the production line photos, for follow-up check |
Q3: is the annual framework agreement necessary? | Yes. Suitable for annual procurement ≥10,000 pcs: 1 Lock-in annual price; 2 guarantee capacity; 3 payment in installments. | Framework plus“Milestones”: if delivery compliance rate ≥95% |
Q4: who will be the third-party quality inspector? | Cross-border selection SGS/Intertek, domestic selection CTI. Key test: Bluetooth connection, waterproof, battery life. | The quality inspection fee is about $150-300 per batch, and the cost is low after sharing |
Q5: How Much Spare Parts is appropriate? | 1% for regular and 2% for high season (Black Friday/Christmas) to avoid missing replenishment. | Spare parts are shipped in bulk, individually packed and marked“Spare” |