DOUGEZ sourcing guide
How to Calculate Landed Cost
Look beyond unit price to packaging, freight, duty, fulfilment, returns and channel margin.
Good sourcing decisions are made before the production deposit. Use this guide as a discussion framework, then confirm the details for the exact product, destination, quantity and customization.
Start with unit cost and retail packaging
Record this point in the quotation, product specification or inspection plan where applicable. Do not rely on a general promise when the requirement can be measured and approved.
Add freight, duty, customs and delivery
Record this point in the quotation, product specification or inspection plan where applicable. Do not rely on a general promise when the requirement can be measured and approved.
Include channel fees, fulfilment, promotion and returns
Record this point in the quotation, product specification or inspection plan where applicable. Do not rely on a general promise when the requirement can be measured and approved.
Protect enough contribution margin for normal operations
Record this point in the quotation, product specification or inspection plan where applicable. Do not rely on a general promise when the requirement can be measured and approved.