The Flexibility of EXW Pricing for Turkish Towels: Why Towel Age Chooses this Approach

The Flexibility of EXW Pricing for Turkish Towels: Why Towel Age Chooses this Approach

At Towel Age, we take pride in producing high-quality Turkish Towels, aka. Turkish Beach towels, or peshtemals, which are known for their versatility and elegance. Our production process involves crafting these products upon order, encompassing various stages such as manufacturing, washing, ironing, sewing brand labels, and custom packaging to meet our customers' exact specifications. As a result, our products become ready for delivery approximately 1 to 1.5 months after the order confirmation.

In contrast, shipping companies typically offer their price quotes with a limited validity period, usually ranging from 1 week to a maximum of 10 days. Moreover, the dynamic nature of shipping costs means that they can fluctuate significantly based on seasonal factors or unforeseen global events. For instance, during busy shopping seasons like the year-end holidays or preparations for the summer season, shipping prices may rise temporarily. Similarly, unforeseen events, such as the congestion of cargo ships in the Panama Canal, can lead to a sudden increase in airfreight costs.

These factors contribute to the dynamic nature of shipping prices, further complicated by the variety of shipping methods available, including express courier services like DHL and UPS, airfreight, sea freight, or overland transportation by truck. The choice of shipping method can significantly impact the overall shipping cost.

At Towel Age, we address these challenges by providing our customers with an EXW (Ex Works) price quote, which stands for "factory price." When a customer places an order and pays the production cost upfront, we initiate the manufacturing process. Once the production is completed, we then obtain shipping quotes from reputable shipping companies, tailored to the customer's preferred shipping method—whether it's express courier, airfreight, sea freight, or overland transportation. We communicate these quotes to the customer, who can then evaluate the various price and delivery options before making their selection and paying the freight cost. Once the freight payment is received, we proceed with the shipment.

This approach offers several benefits to our customers. First, it allows them flexibility in choosing the most suitable shipping method and delivery timeline. Secondly, it enables them to make the payment in two installments.

For customers who prefer to pay the production and freight costs in a single transaction, to avoiding the inconvenience and cost of multiple SWIFT transfers we accommodate this by adding a 10% contingency to cover any potential fluctuations in shipping costs during the production process. Moreover, if the initially paid freight cost exceeds the final cost or remains within the 10% contingency, the customer retains a credit balance. This balance can be returned via SWIFT transfer or held for future orders, providing further financial flexibility to our valued customers.

At Towel Age, our approach is not driven by profit from shipping but rather by the aim to excel in our core business—Turkish Towel production. We are committed to offering our customers a range of shipping options, empowering them to make choices that best suit their needs and preferences. Our dedication to providing flexibility, transparency, and cost-effectiveness underscores our commitment to delivering an exceptional experience to each customer we serve.

Image Credit: © Huseyin Gonullu from TowelAge

Disclaimer: The information provided in this blog post is for illustrative purposes only. Please consult TowelAge for specific details.

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