One of the most important fluctuations on cost prices is Transport costs.
Directly linked to oil rate and mainly based also on the USD change rate, transport costs fluctuate a lot and have a direct impact on your gross margin.
That's why it's very important to be aware day by day on these 2 important values: oil and USD (both in Euros) to check how it influence on your cost price or gross margin.
I always recommend to all producers selling on CIF terms to add a special clause in their sales agreement and specify clearly the cost of transport. If there is a variation of more than 10% on the agreed transport cost, this will be repercuted on invoice (before of course receving the acceptance from the final customer).
These last 4 years, many manufacturers have had to assume big losses due to very high fluctuations (on shipping companies-mainly form China as all the concepts are invoiced in USD).
Another option is to mention both rate in your offer (oil from one part and USD/EUR change rate applicated from the other side), if there is a difference of more than 10%, price and offer will be reviewed.
You can also negotiate with your shipping company on a fix change rate for a specific period and mentioned it on the proforma invoice.
These are small tips to protect yourself from this very volatile price term.
Reminder on Incoterm
