Coconut charcoal briquettes’ price is variant compared to factories, higher price then the product must also have a high value.
Coconut charcoal briquettes’ price range is USD 1100-1500 per Metric Tons, it depends on the quality, ash content, and also the incoterms.
The majority of coconut charcoal suppliers, already include their price for their production, packaging, and shipment of FOB.
There are still many importers who want to start their charcoal business thoughts the coconut charcoal briquettes price range is from USD 500 to USD 700, while the exact price starts from USD 1100 to USD 1500 per Metric ton.
They have a misconception that charcoal briquettes have the same price as natural hardwood charcoal.
They also have a misconception about coconut briquettes are not as different as sawdust briquettes. They thought the price is USD 800 to 900, but coconut charcoal has better quality compared to other briquettes.
If you wondering why the coconut charcoal briquettes price is higher than any type of charcoal? Isnt they all the same?
We will share with you why coconut briquettes have higher prices than other charcoals.
Charcoal briquettes have a higher value than natural charcoal, they have a custom size, longer burning, less ash content, no smoke, no ODOR, and eco-friendly.
Coconut briquettes are not the same as natural hardwood charcoal or even natural coconut shell charcoal which is just made by buying the raw materials, burning them, and then throwing them away in a bag or sack.
Coconut briquettes have high-quality control and production with technologies. So they have more production expenses than natural charcoal. They also have to be monitored carefully, and calculate the briquettes width and length accurately.
Charcoal briquettes also have factory to secure their products and machines.
Coconut briquettes are mainly used for shisha and start to be used for bbq. Why is coconut the favorite?
As we mentioned earlier, coconut briquettes have no smoke and no smell, and that is what makes them comfortable for smoking shisha.
What if people buy sawdust briquettes for their shisha? Of course, it’s not good for health because it contains smoke and lots of carbon monoxide, and will make them cough often. Less ash, so their shisha more clean and longer burning time.
Same as for bbq, with no smoke, no smell, long burning time, and stable heat. Coconut briquettes have more value, because they can bbq in indoors (good for restaurants), have stable heat (food cooked evenly well), have less ash (bbq is cleaner), and long burning time (save more money).
Logically, Indonesia’s coconut supply is far more dominant produce than the coconut supply in other countries.
If you know supply and demand theory, the less the supply, and the high demand, the the price will increase.
The higher the supply, the less demand and the price will be lower.
In the middle east and Europe, they have a high demand for coconut briquettes, but they have low coconut supplies and their coconut is not good as from Indonesia.
Indonesia is the World’s largest producer of coconuts, with a gross production of 20 million tonnes in 2020 according to the Food and Agriculture Organization of the United Nations: Statistical Division (FAOSTAT).
If your countries have less supply of coconut, then maybe your price is higher than the coconut price in Indonesia because we are easy to search for coconut. We almost can find coconut in every corner of the streets.
Most Middle east coconut charcoal is made in Indonesia, also in Asia like Japan and South Korea. You can see it in their packaging.
You also can see in Europe like Germany, Spain, France, and Italy, you can see their coconut charcoal that has a description made in Indonesia.
Coconut charcoal briquettes can set you apart from the competition and can avoid a price war.
Because coconut charcoal briquettes best value is “environment friendly” or “environment hero” because coconut can replace hardwood and stop from cutting trees for charcoal.
And of course, with other advantages they have, coconut briquettes deserve to have a higher price than any other charcoal.
Overall, the intricate production process, supply quantities, higher quality, geographical factors, shipment delivery, and sustainability considerations collectively contribute to the higher price of coconut charcoal in the market.
It doesn’t make sense if the 100% coconut shell price is equal to the 100% wood charcoal.
For a simple explanation, imagine if I sell 1 bottle of mineral from a river, and then you sell 1 bottle of mineral from the best mountain ever and its rare water. You need to cross another island by boat and take a 20 km walk onto the mountain with dangerous obstacles, and in the market, my mineral water has the same price as yours. You do not deserve to lower your price. Price is equal to value.
Coconut charcoal is often priced higher compared to other types of charcoal due to its exceptional qualities and the unique production process it undergoes. When compared to sawdust briquettes or even traditional charcoal sources like hardwood, coconut charcoal offers several advantages that contribute to its increased cost.
And this price sometimes gives a hard consideration and business decision.
Because it’s more expensive compared to others.
But the problem is, every importer wants to have the best quality but also the cheapest price. Not just them, we are all likely to right? But the fact is, it’s impossible to do that.
We cannot buy Caviars at the price of chicken eggs, we cannot buy Bugatti at the price of Toyota.
Coconut charcoal briquettes are the best types of charcoal ever, the price cannot be the same as hardwood or bamboo charcoal.
Isnt they all the same? If you have already been in the charcoal business for a very long time, then you know that they are not the same.
Okay, if you are here and already understand why the coconut charcoal price is higher. Then let’s talk about how to reduce the cost.
Every coconut briquettes supplier, calculate their products per Metric Tons, and not per piece/unit. So with reducing your cost, you can lower the price from USD 100 per Metric ton to USD 500 per metric ton, or more. If you want to import at a low cost, then you can lower the price as big as you can. And to do so, you can lower your price by this several things:
Packaging gives a significant effect on supplier price because packaging with bulk also needs lots of material and production.
There are 2 types of packaging :
1. Inner box (small box 1 kg, 2 kg, 3kg)
2. Master box (big box 1 kg, 2 kg, 3kg)
The high expense of this packaging is the inner box, because the inner box has to be printed for 18.000 units in a 20ft container, and also 26.000 units in a 40ft container.
Also, the inner box usually used printing for customer brands and logos, so it takes lots of cost.
So, if we use the inner box, the supplier price will be an extra USD 100/MT, it depends on your supplier factory.
If your supplier does not produce the inner box in his factory (need other parties involved). Then they cannot lower the price to USD 100 per Metric Ton. They need to cost more, so they will lower the price to maybe about USD 50.
But if your supplier produces the inner box in his factory without the need to
working with other businesses, then they can lower the price to USD 100 per Metric Ton. And it will make the price even lower.
Conclusion:
Without an inner box, you can reduce costs for:
1. Decrease USD 50 per Metric Tons, if your supplier works with a packaging producer.
2. Decrease USD 100 per Metric Tons, if your supplier makes the packaging independent.
2 incoterms are usually used in the coconut briquettes business:
1. FOB
2. CNF
These both sometimes can be applied to the shipment terms, and one of them has a higher price than the other one.
FOB means the exporter is responsible for the transportation costs to the local port.
If we use FOB terms, then our responsibility is to manage our goods until our nearest port which is Tanjung Priok Port, and then for the cargo ship until then is the importer’s responsibility.
CNF means the exporter is responsible for the transportation costs to the port of destination.
If we use CNF, then our responsibility is to manage our goods from the factory, until your port destination, cargo ships charge is managed by us.
By these incoterms, then CNF must have a higher price than FOB.
But the advantage of CNF is you can relax in your office because we manage all the shipments until the products arrived at your port.
While FOB you need to manage the cargo ships also, and products arrived in your port, or even until your warehouse.
So for this, if you use CNF, it can increase supplier price to USD 300 to 400. This also already includes insurance.
While FOB, maybe charges you about USD 100 to 200 per MT, and it’s not include insurance. And these incoterms are also already included in the supplier price in the first place.
So if the supplier sells the products for USD 1200 per MT, that USD 200 per MT already includes FOB.
If CNF, then the supplier just needs to add USD 200 per MT more for the incoterms expenses. Let’s say the supplier sells 1200 per MT (FOB), if you want CNF incoterms, then the price will be USD 1400 per MT.
Conclusion:
If the supplier price includes FOB:
1. Plus USD 200, if you want CNF incoterms
2. Minus USD 0, if you do not want FOB incoterms, because FOB incoterms already included in the price
If the supplier price includes CNF
1. Minus USD 0, if you want CNF incoterms because CNF incoterms already include in the price
2. Minus USD 200, if you want FOB incoterms
Product grades are focused on the specification difference, it can be moisture content difference, ash content, calorie, volatile, etc.
It may affect the briquettes such as ash color, and burning time. For coconut briquettes, it also can affect smoke content, and also ODOR.
The specification is usually focused on the shisha hookah market. Because their main focus is to have no smoke and no smell, with a long burning time, and contain minimum ash.
While for bbq, they also focused on things as the shisha market does, but their main focus is high heat and also stable heat to cook evenly.
In the middle east, some markets focus on quality or just focus on price. Same as Europe.
We usually export our best specification grades to our customers in the middle east, and also Europe such as Germany, and Italy. Asia such as Japan, and Korea also focus on quality.
But we also export to the middle east, where their market is prioritize cheap price as number 1, and then quality as number 2.
So it all depends on your market, if your market is focused on quality, then changing product grades to lower quality is not recommended for you.
But if your market tells you that cheap price is number 1, and they do not focus on quality, then changing the product grades lower is a good business decision for you.
Product grades in each type of factory have different names, there are premium, super-premium, platinum, etc.
While our product grades are named Gold and Silver. So you easy to remember and you already know what is our best grades without you having to think twice about the names.
Product grades price range usually about USD 100 per MT, so if you choose from Gold to Silver grade, then you will get minus USD 100 per MT.
If your supplier has 3 grades, and you want to change your grades from the most expensive to the cheapest, then the price will decrease by about USD 200 per MT. It depends on your supplier’s product grade price.
Conclusion:
Minus USD 100, if you change Gold Grade to Silver Grade.
Plus USD 100, if you change Silver Grade to Gold Grade
Note: this grade is affecting the product specification and their qualities.
Yes, orders with larger quantities can give you lower prices, not in the context of total cost, but in the context of price per MT.
The more briquettes you order, the more discount you get. But still, it all depends on your supplier.
Some suppliers sell their products at the same price, no matter how much you order.
And some suppliers give you a discount if you order more from them, or when do a contract.
This discount is not fixed, some also give a low discount or high discount.
We recommend you ask your supplier what discount will you get if you do a contract.
Or you can ask us what discount we have if we do a contract, you can ask us on WhatsApp at +6281774125277 or littlebriquette@gmail.com
Charcoal briquettes types can be variant, there are bamboo, sawdust, coconut, and more.
If you already lower the packaging price, product grades, and any else but you still think the price is expensive and you cannot afford it, maybe you can try to negotiate with your supplier.
But if that still does not fix anything, then the best way is to buy other charcoal briquette types.
As we mentioned before, many importers think that coconut briquettes are the same price as natural hardwood charcoal or even sawdust briquettes. They think coconut briquettes’ price range is about 600 to 700 or 800 to 900.
If you already understand coconut charcoal price is high, and still cannot afford it. Then maybe you should change the briquettes types IF your market still demanding it.
Because if your market is shisha hookah, they will not use any other types of charcoal except coconut briquettes. They will not use natural hardwood or even 100% sawdust briquettes.
It’s also for BBQ enthusiasts, if your BBQ market does not accept other charcoal except coconut briquettes, then you cannot buy natural or sawdust charcoal. This typical market is usually in B2B such as restaurants.
But some BBQ enthusiasts just want to buy natural hardwood or 100% sawdust because they do not care. If your market is like this, then you can pivot your business product and change it to products that are more affordable for you and you also still get profits.
But what if your market still has coconut briquettes? Are there any solutions?
The best solutions for this issue are:
1. Change product grades to the cheapest
2. Mixing your briquettes with sawdust, such as (95% coconut + 5% sawdust) (90% coconut + 10% sawdust) (85% coconut + 15% sawdust)
This solution maybe can fit your budget, but it will affect the quality.
From our experience, there are still some customers that still want our best grades but with a price of our cheapest grades.
But sorry, as we said before, price is equal to value. We cannot buy caviars with a price of chicken eggs, we cannot buy a Bugatti at a price of a Toyota.
We understand that this sometimes becomes a problem for coconut briquettes importers, they cannot pivot their charcoal products, but also needs the cheapest price.
If you need the best coconut briquette grades, but still feel hard to invest in it, then you rather low the quality or you invest it later on until you have stable finances and are ready to purchase.
That is maybe the best solution, but again, every decision is made by importers. Because to make beneficial cooperation, it also needs a prepared decision.
If you want to order coconut charcoal briquettes from us or want to consult with
us about your coconut briquettes business problems, feel free to tell us on WhatsApp at +6281774125277 or littlebriquette@gmail.com
Hope this article helps.
We are a Private Label Manufacture/OEM Manufacture, we can produce coconut charcoal briquettes specifications according to your request. We can also make a custom coconut charcoal briquettes shapes and sizes, and also custom packaging with under your brand!
