I hope you had a nice weekend. Below is a financial schedule we developed for working on projects going forward. Please review and let me know if you have any questions.
Smaller Projects $100,000 and under:
A. Projects under $100,000 our terms would be the normal 50% before production, 30% before shipping and 20% at possession/delivery.
Larger Projects over $100,000:
Project over $100,000 we could work on the following agent/management fee/LC with factory or Import/Export company terms. The fee does not include travel, sample/misc. shipping expenses (these expenses would be agreed on before they are incurred). Any Duty/taxes or fees due on the project or merchandise in China, the USA or end destination country are not included in the fee and would be additional. All projects terms will be FOB China.
B. $100,000 up to $250,000 10% agent/management fee and LC with the factory/Import/Export Company.
C. $250,000 up to $500,000 a 7% agent/management fee and LC with the factory/Import/Export Company.
D. $500,000 and up a 5% agent/management fee and LC with the factory/Import/Export Company.
I was informed by David that some factories are not capable of working on Letter of Credit terms and need funds to move the project forward. In those cases, an Import/Export company will front the money to the factory and the Letter or Credit would be paid to them.
If we can get to a place where we are doing several smaller projects or multiple projects on a monthly bases we can work on new fee schedule. For example, if we are doing projects $200,000/month we can work on a new fixed percentage on an annual bases.