FOB price
Also called: Free on board
The price of goods loaded on board the ship at the port of export, after which freight, insurance and risk pass to the buyer.
FOB, short for “free on board,” is an Incoterms rule. In apparel sourcing, the FOB price is the factory’s price for finished garments on board at the origin port, and it is the number brands negotiate and compare.
Freight, insurance, duty and handling after loading are the buyer’s cost.
Where it goes wrong
FOB prices are renegotiated on calls and in chats, and the PO or proforma invoice can keep the old price long after a new one was agreed.
What Spurby does
Keeps the agreed FOB on the style’s record with its source, and flags a PO, PI or invoice that doesn’t match.
Free template: Garment costing sheet template