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Price estimation tips - MORBI | Tiles manufacturing hub of India

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Price estimation tips

Knowledge of Industry

If you are new to tiles business the calculation of landed price may be little confusing. Especially when they are trying to source from Morbi directly. Here we are trying to demystify tile procurement costs.

There are mainly two delivery terms used:

  • Ex-factory

  • FOR (Free On Road) (e.g. FOR Jaipur, FOR Coimbatore etc)


Unless specified all manufacturer quote you Ex-factory price. Which means this price is without…

  • GST (Goods & Service tax)

  • Transportation


Now comes the cost calculation part.  We will take a examples. Mr. Sharma who has a tile shop in Jaipur needs to order 300x600mm wall tiles from Morbi. The factory offered him Rs. 185/box (5 piece packing) ex-factory...

Ex-factory rate                          Rs. 185.00

GST (Goods & Service Tax):
Now we will need to add GST amount to this. Let us assume Mr. Sharma having a firm with GST tax registration. From 1st July 2017 the GST on ceramic tiles has been 28%

Ex-factory rate                          Rs. 185
+ GST                     @ 28%       Rs. 51.8

-------------------------------------------------

Rate post tax                             Rs. 236.8


Transportation cost (freight):

We need to calculate the fraction of transportation per unit.


e.g. Morbi to Jaipur transportation is Rs.1300/Tonne (1000 kg)
Now if 1 box of 300x600 is 14.5 kg there will be 69 such boxes in 1 tonne (1000 kg)

Rs 1300 / 69 boxes = Rs. 18.85 is the transportation cost per box


Ex-factory rate                         Rs. 185
+ GST                     @ 28%      Rs. 51.8
-------------------------------------------------
Rate post tax                            Rs. 236.8
+ Transportation cost per box   Rs. 18.85

-------------------------------------------------

Landed rate per box               Rs. 255.65


Hence this final price will be landed price for 300x600 mm wall tiles at the destination. It is also called FOR (Free on road) price.

Note:

  • Above method can work for any size of vitrified tiles or wall tiles. You will need to know weight per box for different size

  • Please make sure who will arrange for transit insurance. In case factory is arranging transportation they will have all India transit insurance. If you are arranging transportation please arrange for insurance as well!

Order: When you order tiles we recommend adding 10% more than the required quantity due to below reasons...


Breakage during transportation

Wastage during tile fixing

Mostly you will need to cut tiles at the ends of the room
We also recommend keeping extra tiles with you to replace in case there is any future damage to fixes tiles.
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