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Reading language
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?Do the three quote options differ much per unit?Swipe horizontally to see the full figure
Takeaway
FOB is 0.20–0.40 higher per unit, but the chart ignores risk and a 30-day cash difference.
Simulated; bars show contribution only.
Teaching simulationUSD per unit · Teaching simulation · Course simulation, not a real quote
Lens 4 · Cash
O43 min
198,000 funded for ninety days
Order value 360,000, cost 306,000
30% deposit brings 108,000
Seller funds 198,000 until day 90
Contribution is 54,000, not cash
Lens 4 · The rule
O42 min
Margin is not cash
A 15% contribution on an order that ties up 198,000 for ninety days is a financing decision disguised as a sales decision.
State the cash requirement next to the margin.
Price the payment terms, not just the goods.
A deposit is cheaper than a loan.
Materials on this slideCash or margin: the factory's working-capital choice
Case · Teaching case
O1–O44 min
Twenty thousand wall lights
Case: twenty thousand wall lights (teaching case)
Cost 12.00, freight 1.60, duty 1.00
DDP 18.00 / CIF 16.80 / FOB 15.60
Audit 1,200, samples 425
Platform fee about 21,000 a year
All figures are simulated
Materials on this slideTwenty thousand wall lights: the inquiry pack
Case analysis · Hidden costs
O42 min
Three costs that arrive before revenue
Annual
Platform fee
21,000 a year: 1.05 per unit here, 0.35 across 60,000.
Per won order
Audit and samples
1,625 before a single unit ships.
Reserve
After-sales
6,000 reserved; 5,400 expected claims.
Decision
O43 min
Accept as asked, or accept with conditions?
As asked
DDP, 45 days from order
90-day terms, no index clause
Risk: cash and delay
With conditions
Quote FOB or CIF, 45 days from sample approval
Deposit 30%, balance before shipment
Index clause, inspection plan, warranty scope
Common misconceptions
O1–O42 min
Four claims to retire
B2B = big B2C.
A quote is a price.
High margin means no risk.
The lowest quote wins.
Classroom activity
O1–O412 min
Write the conditional recommendation
3 minFill the five columns for DDP, CIF and FOB.
3 minCompute contribution per unit and cash funded.
4 minAdd audit, samples and the allocated platform fee.
2 minWrite six lines with at least four conditions.
Self-check
O1–O42 min
Five questions
Q1 B2B traits · Q2 seller contribution
Q3 buyer landed cost · Q4 cash funded
Q5 platform fee allocation
Summary
All2 min
What you can now do
Verify a B2B buyer before quoting.
Read and write a five-column quote.
Compute contribution, cash and evidence costs.
Recommend with conditions.
Sources & next
Wrap-up1 min
Sources and preparation
Textbook §2.3–2.3.4 and Figures 2-7, 2-8 (SRC-002).
Textbook §3.3, §3.4.1 and §3.6 (SRC-003).
Alibaba.com (SRC-082) for platform positioning only.
Slide 1 of 21
Lesson 17 · Integrated case · 1 / 21
Integrated case: supplying overseas businesses
An inquiry for 20,000 wall lights
Purpose: open with the email, not the theory. State clearly that the firm, buyer and numbers are fictional. Ask what they would reply tonight. Transition: the reply depends on questions they have not asked yet.
Opening question · 2 / 21
Opportunity or trap?
20,000 units, custom specifications
Audit first, then samples
Quote to include freight and duty
90-day payment terms
Purpose: force a position before the analysis. Take a vote and two reasons. Do not resolve it yet. Emphasise that both answers can be wrong if stated unconditionally. Transition: first question is not price.
Learning objectives · 3 / 21
By the end, you can...
Judge whether an inquiry is B2B and verify the buyer.
Map the seven links onto the funnel.
Read a five-column quote and compare Incoterms.
Compute contribution and cash, then recommend with conditions.
Purpose: make the deliverable explicit. O4 is the assessment task; O1–O3 are the steps. Emphasise that a verdict alone will not pass. Transition: start with the party.
Lens 1 · Is it B2B? · 4 / 21
Five tests, and one missing from the email
Both parties are businesses
Bought for operations, not personal use
Larger quantity, more specifications
Longer lead time, possible repeat
Missing: who is this buyer, really?
Purpose: apply §2.3.1 and expose the verification gap. Ask which test the email fails. Emphasise that four of five is not a pass until the buyer is verified. Transition: B2B versus B2C.
Lens 1 · Two models · 5 / 21
B2B and B2C differ in four places
B2B
End users are companies
Approval by executives
Prices and terms are negotiable
B2C
End users are individuals
One person or household decides
Same product, usually same price
Purpose: give the vocabulary for the decision chain. Ask who signs, who pays, who inspects in the case. Emphasise that the cycle is weeks or months. Common error: applying limited-time discounts. Transition: the seven links.
Lens 2 · The process · 6 / 21
Seven links from inquiry to repeat
Purpose: give the whole process before the funnel mapping. Ask which link kills most inquiries. Emphasise that sampling is both proof and screen. Common error: treating links as sequential and frictionless. Transition: the funnel.
Lens 2 · Funnel and evidence · 7 / 21
Where inquiries die, and what that costs
Inquiry = awareness and interest
Audit and samples = evaluation
Quote and contract = intent
Delivery = purchase; repeat = repurchase
Audit 1,200 + samples 425 per won order
Purpose: put a number on the evidence stage. Ask how many inquiries they would need at a 10% win rate. Emphasise that sample cost is acquisition cost. Transition: the four pieces of evidence.
Lens 2 · Evidence · 8 / 21
What a serious buyer wants to see
Purpose: make trust operational. Ask which evidence they could produce next week. Emphasise that each item costs money and time. Common error: offering discounts instead of evidence. Transition: the quote.
Lens 3 · The quote · 9 / 21
A quote has five columns, not one
Landed cost: goods to after-sales
Lead time: state the trigger
MOQ: set by tooling and materials
Payment terms: a price in disguise
Risk: Incoterm, inspection, claims
Purpose: replace the single-price habit. Ask which column the buyer's email leaves out. Emphasise that a price without the other four cannot be compared. Transition: DDP versus FOB.
Lens 3 · Two ways to quote · 10 / 21
Who carries the freight and the risk?
DDP US$18.00
Seller pays freight, insurance, duty
Seller cost 15.30, contribution 2.70
Buyer landed cost 18.00
FOB US$15.60
Buyer pays freight, insurance, duty
Seller cost 12.70, contribution 2.90
Buyer landed cost about 18.20
Purpose: show the inversion in one view. Ask which side prefers which, and why both are rational. Emphasise that the totals differ because risk moved, not because someone is lying. Transition: the contribution bars.
Case analysis · 11 / 21
Seller contribution per unit
?Do the three quote options differ much per unit?Swipe horizontally to see the full figure
Takeaway
FOB is 0.20–0.40 higher per unit, but the chart ignores risk and a 30-day cash difference.
Simulated; bars show contribution only.
Teaching simulationUSD per unit · Teaching simulation · Course simulation, not a real quote
Purpose: put the three options on one scale and note how small the differences are. Ask whether 0.20 per unit is worth a 30-day cash difference. Emphasise that the bars ignore risk. Transition: the cash calculation.
Lens 4 · Cash · 12 / 21
198,000 funded for ninety days
Order value 360,000, cost 306,000
30% deposit brings 108,000
Seller funds 198,000 until day 90
Contribution is 54,000, not cash
Purpose: make the cash constraint concrete. Ask how many such orders a factory with 200,000 of working capital can run. Emphasise that annual profit is capped by cash. Common error: reading contribution as money in the bank. Transition: the rule.
Lens 4 · The rule · 13 / 21
Margin is not cash
State the cash requirement next to the margin.
Price the payment terms, not just the goods.
A deposit is cheaper than a loan.
Purpose: give students a sentence they can reuse. Ask what discount they would give for payment on delivery. Emphasise that terms are negotiable in B2B. Transition: the case.
Case · Teaching case · 14 / 21
Twenty thousand wall lights
Cost 12.00, freight 1.60, duty 1.00
DDP 18.00 / CIF 16.80 / FOB 15.60
Audit 1,200, samples 425
Platform fee about 21,000 a year
All figures are simulated
Purpose: consolidate the numbers in one place. Repeat that the case is fictional. Ask which option they would quote before showing the analysis. Common error: quoting DDP because the buyer asked. Transition: the hidden costs.
Case analysis · Hidden costs · 15 / 21
Three costs that arrive before revenue
Purpose: make invisible costs visible. Ask which one is easiest to forget. Emphasise that the warranty reserve barely covers expected claims. Common error: treating the reserve as profit. Transition: the two ways to answer.
Decision · 16 / 21
Accept as asked, or accept with conditions?
As asked
DDP, 45 days from order
90-day terms, no index clause
Risk: cash and delay
With conditions
Quote FOB or CIF, 45 days from sample approval
Deposit 30%, balance before shipment
Index clause, inspection plan, warranty scope
Purpose: frame the deliverable as a choice of terms, not a verdict. Ask which condition is non-negotiable for each side. Emphasise that conditions are the answer. Transition: the claims to retire.
Common misconceptions · 17 / 21
Four claims to retire
B2B = big B2C.
A quote is a price.
High margin means no risk.
The lowest quote wins.
Purpose: close the four loopholes. Point to the slide that refutes each. Emphasise that verification, five columns and cash are the missing pieces. Transition: the writing task.
Classroom activity · 18 / 21
Write the conditional recommendation
Purpose: produce the assessed deliverable. Circulate and check the five columns first. Emphasise conditions over verdicts. Ask two groups to read their conditions and compare. Transition: summary.
Self-check · 19 / 21
Five questions
Q1 B2B traits · Q2 seller contribution
Q3 buyer landed cost · Q4 cash funded
Q5 platform fee allocation
Purpose: check the quantitative core. Q2 and Q3 test the inversion; Q4 tests margin versus cash. If Q4 fails, return to the cash slide. Transition: summary.
Summary · 20 / 21
What you can now do
Verify a B2B buyer before quoting.
Read and write a five-column quote.
Compute contribution, cash and evidence costs.
Recommend with conditions.
Purpose: consolidate the case method. Ask one student to restate the inversion and another to give a condition. Emphasise that conditions are the professional output. Transition: the next integrated case, selling direct to consumers.
Sources & next · 21 / 21
Sources and preparation
Textbook §2.3–2.3.4 and Figures 2-7, 2-8 (SRC-002).
Textbook §3.3, §3.4.1 and §3.6 (SRC-003).
Alibaba.com (SRC-082) for platform positioning only.
Purpose: fix the evidence base. Remind students that the case, quotes and terms are fictional and are not trade or legal advice. Emphasise that fees follow platform disclosure. Transition: prepare the direct-to-consumer case.