How bulk pricing works for smart tags? A buyer’s guide

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)

bulk order meeting

Basic Knowledge: volume price = ? (formula + cost breakdown)

1. Core formula card (straight out of the box)

Formula nameCalculation formulaKey tips for purchasing
EXW factory price ≠ true costReal cost = EXW unit price + transportation/customs clearance + tariff + packaging + quality inspection + loss preparationThe quotation must ask“Does EXW contain basic packaging (e.g. neutral boxes) ?”
Landed CostC.I.F. = EXW unit price + sea/air freight + customs clearance + duty + local distribution + QC + 2%-3% loss reserveTariffs 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 factorPurchasing concernsLanding
Chip/functionBluetooth version (5.0/5.1/5.2) , support for Apple Find My/Google Find MyMake and model of the chip (e.g. Nordic NRF52832)
Waterproof/materialsWaterproof 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 solutionBattery Model (CR2032/rechargeable) , brand (Panasonic/NAMFU) , battery lifeBattery life ≥6 months.”
Custom depthThe LOGO/color/packaging is customizable, and the firmware changes the UILight customization (LOGO + color box) , cost control
CertificationWhether the target market certification (CE/FCC/RoHS) has been completedCertificate + 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 purchasedEXW unit price (USD/PCS)ScenariosBuying action
1003.50Sample testing + small-scale validationBuy only the public version to avoid the cost of customization
5002.80First small-scale pilot productionAdditive base customization (monochrome LOGO)
1,0002.30Regular replenishmentA single order of ≥1K, diluting production costs
5,0001.80Main batchSign the quarterly framework and lock in the price
10,0001.60Big ticket item of the yearSuppliers are required to keep core materials on hand to ensure delivery

2. Price landing techniques (direct use of words)

Types of techniquesExamples of idiomsScenarios
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)

CustomizationsUnit Price Impact -USD-PCS/pcs)Delivery impactPurchasing considerations
Logo screen printing (Monochrome)0.03-0.05+ 0 daysProvide a clear LOGO vector and confirm the location of the silkscreen
Laser engraving of the LOGO0.08-0.10+ 1 daySuitable for dark skins and longer lasting effects
Spot Color (Pantone)0.05-0.20+ 3-7 daysConfirm pantone color number (e.g. PMS 2593C) to avoid chromatic aberration
Retail colour boxes (including instructions)0.08-0.30+ 3-10 daysRequest to provide color box proofing, confirm the material (white card/Kraft Paper)
Waterproof upgrade (IPX4→ IP67)0.15-0.50+ 5-12 daysAdditional waterproof test report required (soak for 30 minutes)
Firmware micro-customization (Beep)0.05-0.15+ 2-7 daysConfirm firmware version number and request beta validation

Trade & logistics options (cost + timeliness)

1. Comparison of incoterms (purchase on demand)

Trade termsDivision of responsibilities (suppliers/purchasing)Unit price levelScenarios
EXWSupplier: ex-factory delivery; purchase: pickup + Customs Clearance + freightLowestOwn Logistics/customs clearance partner
FOBSupplier: delivery to port; sourcing: Sea Freight + customs clearanceMedium to lowSea freight (≥5k) , want to control sea freight costs
CIFSupplier: Marine + Insurance; procurement: customs clearance + local distributionNew to shipping, don’t want to worry about insurance
DDPSupplier: all-inclusive door-to-door (customs clearance + taxes + distribution)HighestCross-border e-commerce (Amazon FBA)

2. Transportation mode choice (Cost & timeliness balance)

Mode of transportPrescriptionApplicable quantityUnit cost (USD/PCS)Control Action of purchasing period
DHL3-7 days≤800pcs0.8-1.5Order 2 weeks in advance during Black 5/peak season to avoid 30% hikes in shipping rates
Air Freight + customs clearance7-12 days1K-5K0.3-0.8Request suppliers to provide air waybill number, real-time tracking
Shipping (LCL)20-40 days≥3K0.1-0.3Give yourself a 20-day grace period to avoid running out of stock
Sea-rail intermodal18-30 days≥3K (Europe)0.15-0.4Low timeliness, want to keep costs down

V. Compliance certification form

Target marketMust-have certificationTime-consumingDon’t forget about purchasing
European UnionCE (RED directive) + RoHS1-3 weeksCE + Test Report (radio band included)
United StatesFCC Part 15 + RoHS1-3 weeksFCC ID number (check the FCC website for authenticity)
United KingdomUKCA + RoHS1-3 weeksMake sure the certificate contains the“UKCA” logo (must see after Brexit)
South-east AsiaSirim (Malaysia) + RoHS2-6 weeksSmall batch can be certified with the public version, the subsequent patch local card

Horizontal price comparison table (3 suppliers compare template)

Comparison itemsSUPPLIERSASUPPLIERSBVendor CPurchasing score (1-5)
EXW unit price (5K/PCS USD)1.801.751.90 
Chip/BluetoothNordic 5.1Ti 5.0Nordic 5.1 
Waterproof gradeIPX6IPX4IP67 
Battery brand/battery lifePanasonic CR2032(Dec)Domestic CR2032(Sep)Panasonic CR2032(Dec) 
Certification coverageCE/FCC/RoHSCE/RoHSCE/FCC/RoHS 
5K delivery20 days18 days25 days 
Warranty/DOA rateDecember/≤1%12 months/≤2%September/≤1% 
Payment terms30/70T/T40/60 t/t20/80 t/t 
Composite score    

Cost & gross profit calculation template

1. Landed Cost

Cost ItemAmount (USD/PCS)Basis of calculationPurchase fill in (self-fill)
Exw unit price (5k ladder)1.80Vendor quotes 
Sea freight (5Kpcs split)0.18Total freight 900 USD, 900/5000 = 0.18 
Customs Clearance + incidentals (apportionment)0.06Customs clearance fee 300 USD 300/5000.0.06 
Tariff (by target market)0.12Tax rate 6.7% , 1.80 × 6.7% ≈0.12 
Customization of retail color box0.12Vendor quotes 
Third party quality inspection (SGS)0.03150 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)2.36Add the above items together 

2. Retail gross margin back-tabulation (platform model)

ItemsAmount (USD)Basis of calculationPurchase fill in (self-fill)
Target retail price24.99Pricing with reference to competitive products 
Platform Commission + payment fee3.7524.99 x 15% (Amazon Standard Commission) 
Warehouse Distribution + advertising fee3.00Category average 
Landed Cost2.362.36 
Gross profit before tax (unit)16.0024.99-3.75-3.00-2.36 = 16.00 
Gross margin64%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 nodesTypical timeWho is responsibleControl Action of purchasing periodEarly warning mechanism (delayed trigger)
Order + advance payment1 dayBuyingIssue water bill after payment, ask supplier to confirm24 hours no confirmation, follow up by phone
Material preparation confirmation3 daysSuppliersRequest for a stock list + delivery commitment letterIf not confirmed within 3 days, send an early warning letter
Sample/pilot run7 daysSuppliersAsk for test report after trial productionOver 7 days, Door-to-door/video verification
Mass production + quality inspection10 daysSuppliersArrange sampling by a third party (eg SGS)10 days, deduction of liquidated damages
Shipment + logistics tracking2 daysSuppliersAsk for logistics single number, real-time track checkMore than 2 days without shipment, suspension of follow-up orders
Total Lead Time (5K)23 daysBoth sidesSet aside a 2-day buffer to avoid missing a saleIf 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)

QuestionsThe answerFurther 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”

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