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Does the surcharge increase my per-unit price?

How does the surcharge affects your per unit price

Shwetangi avatar
Written by Shwetangi
Updated over 3 months ago

Marginally, yes โ€” but itโ€™s still far lower than the cost of meeting full MOVs or losing access to premium factories.

Let us assume the products are men's beach broad shorts, similar to Boatrider's beach shorts


Retail Price = AED 269 (73 USD)

(Exchange rate on 24th Oct, 2025)

Unit Factory Price : $6 USD per unit | FOB India

  • Quantity : 2000 pcs per color

  • Total Colors = 3 Colors

  • Total Quantity = 6000 pcs

Total Product Price : $36,000 USD

Fixed Co-pilot Price : $12,000 USD

Total Purchase order Value : $48,000 USD

(Total PO Value)

Unit price : Total PO Value / Total Quantity

=>=> $48,000/6000 = $8

Final unit price (including Co-pilot program fees) : $8 USD

So we see that while the factory unit price is $6 USD, the unit price including the co-pilot program fees becomes $8 USD

Marginal increase in unit price is just $2 USD


However, this equation flips over it's head when you total order quantity is substantially low. In the above example, if your total quantity reduces by half, the marginal increase in unit price is substantial.

Let us do the calculations once again:

Unit Factory Price : $6 USD per unit | FOB India

  • Quantity : 1000 pcs per color

  • Total Colors = 3 Colors

  • Total Quantity = 3000 pcs

Total Product Price : $18,000 USD

Fixed Co-pilot Price : $12,000 USD

Total Purchase order Value : $30,000 USD

(Total PO Value)

Unit price : Total PO Value / Total Quantity

=>=> $30,000/3000 = $10

Final unit price (including Co-pilot program fees) : $10 USD

So we see that while the factory unit price is $6 USD, the unit price including the co-pilot program fees becomes $10 USD

Now there is a substantial increase in unit price of $4 USD (approx. 40% of unit price is attributed to Co-pilot program)

These calculations are just for references, the most important factor for anyone evaluating co-pilot program is the unit factory price and also the retail price.

In the above example, even at $10 USD unit price, the product still retails for $73 USD : not bad when you are just starting off.

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