Freight & landed-cost calculator
In short: landed cost is the supplier price plus freight, extra charges and duty. Mark up the landed cost, not the supplier price, or freight quietly comes out of your profit.
- Product cost
- $1,672.00
- Landed total
- $1,892.00
- Freight & charges add
- 13.2%
- Sell at 30% on landed
- $6.15
- Line profit
- $567.60
Marking up the supplier price instead would sell at $5.43 and earn only $281.60 on this line.
Questions
What is landed cost?
Landed cost is everything you pay to get material to your door or your customer’s: the supplier’s price plus freight, handling, certification or cut charges, and any duty or tariff. It is the true cost you should mark up, not the supplier’s unit price alone.
How do I calculate landed cost per piece?
Add product cost, freight, fees and duty, then divide by quantity. 400 pieces at $4.18 is $1,672.00; with $185.00 freight and a $35.00 MTR charge the landed total is $1,892.00, or $4.73 per piece.
What happens if I mark up the supplier price instead of the landed cost?
You give away margin. In the example above, a 30% markup on the $4.18 unit price sells at $5.43, earning $281.60 on the line. The same 30% on the $4.73 landed cost sells at $6.15 and earns $567.60.
How do I convert a price per hundred or per thousand?
Fasteners are often quoted per hundred (C) or per thousand (M). Divide by 100 or 1,000 for the per-piece price: $62.00 per C is $0.62 each, and $590.00 per M is $0.59 each.
Related
Comparing several suppliers? See how to compare supplier quotes. Pricing to a target margin instead of a markup? Use the markup vs. margin calculator.
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Otto, MySourceBot’s AI purchasing employee, reads supplier prices from email, applies your markup and freight rules in code, and shows the margin on every quote before you send it. Watch him work.
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