What is Ex-Factory Price?

Ex-factory price refers to the price that a manufacturer charges for a distributor or other buyer to purchase products directly from the factory. Ex-factory price is the price of the goods only. Transportation costs, shipping, handling, or taxes will be excluded from the price, i.e. The mentioned costs are borne by the buyer.

Hence, when the Ex-factory price is used the buyer is responsible for arranging the pickup of the goods from the factory. It is the exact amount of product the manufacturer charges to the distributor or to the dealers as a product price. Often distributors and wholesale companies purchase goods directly from the factory by providing their own transport.

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