Cost component analysis for wheelchairs supply

The final cost of wheelchairs for end users in LMICs are estimated at between 28 per cent - 255 per cent, depending on the shipment route, import tariffs and distributor margins. Four major cost components significantly influence the final price to the consumer with distributor margins accounting for the largest proportion. Shipment costs are the major cost drivers due to the bulky nature of the products. While import costs can vary and many countries may have exemptions that are variably applied.

Table 16: Cost component for wheelchair supply

Cost Component Lower estimate Higher estimate
Taxes and duties: import duty, custom tax, VAT 0 per cent 20 per cent
Shipment cost 15 per cent 20 per cent
Quality inspection cost 5 per cent 15 per cent
Distributor margin 8 per cent 200 per cent
Additional cost 28 per cent 255 per cent
71 73