Short answer: Compare offers on the same specification, pack, quantity and delivery term, then work out the landed cost per kilogram. A lower unit price often hides a weaker specification, a heavier carton cost or freight you have to pay yourself.
Two suppliers can quote the same product at very different prices. Usually the offers are not for the same thing. Here is how to line them up.
Start with the same basis
Before you look at price, make sure each offer states:
- Grade and specification, including ash, moisture, fixed carbon and calorific value, and the basis they are reported on.
- Shape and size, for example a 25 mm cube or a hollow hexagon.
- Pack and carton, including net weight per carton.
- Quantity, for example one 20 ft container, and whether that is the minimum.
If any of these is missing, ask. An offer that does not name its specification cannot be compared.
Work out the price per kilogram
Convert every offer to price per kilogram of charcoal, not per carton or per box. Packs differ in weight, and the packaging itself can be a large part of the cost for retail packs.
Then add what is not included. A basic table helps:
| Cost | Offer A | Offer B |
|---|---|---|
| Product, per kg | ||
| Packaging and artwork | ||
| Freight to port or destination | ||
| Insurance | ||
| Import duty and local costs | ||
| Landed cost per kg |
Match the delivery term
Prices follow a delivery term such as FOB, CFR or CIF. A FOB price is not lower than a CIF price until you add freight and insurance. Our guide how to read a charcoal quotation explains the terms.
Look at lead time and payment
Ask when the lead time starts and what the payment schedule is. A cheaper offer with a longer lead time or an unfavourable payment schedule may cost more in the end.
Do not buy on price alone
A few points are worth more than a small discount:
- Consistency from batch to batch. Ask how it is checked.
- A reference sample that the production follows.
- A clear process if a batch falls outside the agreed parameters.
- Packaging that survives shipping.
Order size
Larger orders can improve the unit cost, but stock also ties up cash and has to be stored dry. Our guide to storing coconut charcoal covers that. For a first order, many buyers start with a smaller trial and grow from there.
At Aero Charcoal
Minimum order, lead time and payment terms depend on the grade, packaging and destination, and are confirmed in the quotation and sales agreement. Send your brief with grade, volume and destination port for a quotation.
