Landed cost
also: total landed cost · delivered cost
The full cost of getting a unit to your warehouse: factory price plus freight, insurance, duties, tariffs, customs fees, brokerage and handling.
The factory's unit price is only the start. Landed cost adds international and domestic freight, insurance, import duties and tariffs, customs processing fees, broker fees, port and handling charges, and sometimes warehousing and currency costs. The Incoterm in your purchase agreement decides which of these you pay directly.
For a hardware business, landed cost, not factory price, belongs in cost of goods sold. Duties and freight can change quickly; tariff rules, shipping rates and surcharges have all moved significantly in recent years.
Founder takeaway
Calculate landed cost per unit with real freight quotes and current duty rates, and rerun it whenever tariffs or shipping rates change.
engineer review pending