Pricing

Fee Structure for Sourcing Feasibility Study

Research fees are based on:

1. The number of product classifications
2. Complexity of the product
3. Order size

Research for the initial production classification is priced at a base rate of 12,500 RMB and additional production classifications, if needed, are priced at a base rate of 10,500 RMB. Price for each production classification is adjusted up or down based on complexity and order size.

1. What does “production classification” mean?

Example: If you are interested in sourcing a fruit basket (plastic fruit in a wicker basket), then there are 2 production classes involved. One class is “vacuum formed plastics” and the other is “wooden handicrafts”. Ensuring that the best overall price & quality is achieved requires that both industries (plastics & wood working) are explored.

2. What is meant by “complexity of product”?

Generally speaking, “off the shelf” or low-tech items require less up front research than new-to-market, technically advanced products.

New products require detailed explanation of specs to potential suppliers during the Request For Quotation (RFQ) phase. Additionally, newer products often involve issues of confidentiality and patent protection. Our research costs reflect these differences.

3. How does order size factor into the cost of research?

SMALL ORDERS

It can be difficult to interest suppliers in small order sizes (10,000 USD and below per year). There certainly are suppliers willing to work on smaller orders, but finding them is more difficult.

LARGE ORDERS

Large order sizes (over 1 million USD) often require greater due diligence into potential partners to ensure suppliers do not become future competitors. Issues of logistics, lead times and duty rates must also be explored in great detail.

STANDARD ORDERS

Most PassageMaker customers are shipping at the container load level, which in terms of US Dollars per year is between $80,000 and $500,000. Our smallest project was for $2,000 worth of apparel and the largest for $52 million in auto parts.

Pricing Examples:

Example One:

Decorative Fruit (one production class)

• Plastic Fruit of standard material
• Ordering at the 40 ft container level

Base Production Classification Price	Vacuum Formed Plastic	12500 RMB
Order size factor	+/- 2000 based on size	0 RMB
Availability/Complexity Factor	+/- 2000 based on complexity	0 RMB
	Total	12500 RMB

Example Two:

Decorative Fruit in Wicker Basket (two production classes)

• Decorative Plastic Fruit of Standard Material
• Placed in flame retardant coated Wicker basket
• Ordering at the 40ft container level

Product Class #1 Base Price	Vacuum Formed Plastic	12500 RMB
Order Size Factor	+/- 2000 based on size	0 RMB
Availability/Complexity Factor	+/- 2000 based on complexity	0 RMB
Product Class #2 Base Price	Wooden Handicrafts	10500 RMB
Order Size Factor	+/- 2000 based on size	0 RMB
Availability/Complexity Factor	+/- 2000 based on complexity	2000 RMB
	Total	25000 RMB

Example Three:

“Talking Fruit Basket” (three production classes)

• Decorative Plastic Fruit
• Incorporating voice-activated recording device
• Placed in flame retardant coated Wicker basket
• Order size of 1.3 million units

Product Class #1 Base Price	Vacuum Formed Plastic	12500 RMB
Order Size Factor	+/- 2000 based on size	2000 RMB
Availability/Complexity Factor	+/- 2000 based on complexity	0 RMB
Product Class #2 Base Price	Wooden Handicrafts	10500 RMB
Order Size Factor	+/- 2000 based on size	2000 RMB
Availability/Complexity Factor	+/- 2000 based on complexity	2000 RMB
Product Class #3 Base Price	Electronics	10500 RMB
Order Size Factor	+/- 2000 based on size	2000 RMB
Availability/Complexity Factor	+/- 2000 based on complexity	-2000 RMB
	Total	39500 RMB

No customer has ever complained that they paid too much for PassageMaker Sourcing Feasibility!

References readily available: Let us put you in touch with a current client in your area. PassageMaker will make every possible effort to meet potential customers in person to discuss your project details.

While the sourcing feasibility study is a starting point for many small and even new business (or new projects) PassageMaker’s typical clients are tier 1 or 2 suppliers to major retailers. Many clients source upwards of USD 1 Million per year from China, yet we welcome small or new business whose products demonstrate a high potential for growth and can commit to a minimum annual amount of 20,000 USD invoice over all for various PassageMaker’s services.