Last night I made a video about the cost breakdown of excavators, and today I want to add some details about the fees you actually pay when buying one.

So, one of my clients, who I was helping inspect an excavator, told me the dealer charged him $1,000 as a “cleaning fee.” Basically, that covered disassembly and packing.

I didn’t tell him the full truth because it might have affected the deal or his mood. I also didn’t want to make the dealer look bad. This was a normal transaction, and both sides had already agreed. Money that’s already spent is a sunk cost—we shouldn’t dwell on it. So I just replied with a little “haha.” If he got the point, he’d know what to do next time.

What they called a cleaning fee is actually a “packing fee.” Shipping companies don’t load the machine into containers themselves. That work is done by the dealer or by hired labor. For example, packing an SY75C costs around 1,300 RMB, which is about $180.

My quote for the excavator was exactly $1,000 higher than what he paid, so I told him, “Actually, they just split my price into two parts—one of them was the packing fee. All together, it’s about the same as my quote.”

If you don’t know how the Chinese excavator market works, no one will tell you the real costs. No matter how many times you buy, you won’t realize you’re paying a bit extra each time.

Here’s the full breakdown of fees:

  1. Purchase Price

This is the machine itself. Online listings are usually a bit lower than the real price to get buyers’ attention.

Example: a $16,000 excavator might be listed at $14,000. Lower prices get more inquiries.

  1. Packing Fee

Includes disassembly, packing, cleaning, and lifting costs. Calculated based on the machine’s size.

Small machines that fit directly into containers might cost only 1,000 RMB (~$140).

Bigger machines require a day or so of disassembly, then a forklift to load parts into the container.

Even bigger machines might need a crane. Total usually doesn’t exceed $1,200.

  1. Logistics Fee

Covers ocean freight, port fees, telex release, customs clearance, and insurance.

Generally transparent, calculated based on machine weight and distance.

  1. Customs Clearance Fee

Includes customs broker fees, import taxes, inspection, warehouse fees, port charges, telex release, and sometimes special permits.

A good company can handle logistics and customs clearance and give you a total price. Definitely worth it. Any issues at customs can cost extra.

  1. Unloading Fee

You can unload yourself or hire people. Cost depends on local labor rates.

  1. Assembly Fee

If the excavator was disassembled for shipping, you pay for assembly at your location.

So basically, all fees fall into six categories: purchase price, packing, logistics, customs, unloading, and assembly. Names might vary, but the meaning is the same.

Sometimes, if a client pushes hard on price, we might sell at cost—but we usually make up for it by selling attachments. Typically, we aim for 15–20% gross profit because China’s VAT is 13%. Selling below that wouldn’t be sustainable. Occasionally, local governments add extra fees that you can’t avoid. Low quotes are often about long-term cooperation, where we can sell more attachments, spare parts, or consumables later—so everyone benefits in the long run.

In the earlier example, the dealer probably made 25–30% profit. That’s normal and doesn’t really affect the buyer. That’s why I stayed quiet. Every company has employees to pay and business to grow. I can’t lure clients with low prices at the expense of someone else’s survival.

Most people in China’s used excavator market come from Hefei, Anhui Province. It’s a beautiful region with a rich history. People from Anhui are very united and dominate the market—you’ll see them everywhere.

But this also means that personal networks influence the market more than open competition, which sometimes bends the normal rules.

Through this channel, I want to gradually reveal these hidden rules so buyers around the world understand the reality and maybe even help change it. I believe in the power of truth.

Thanks for watching!

I’m Mike Phua.

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