The Unit Price Is Not Your Real Cost
A low rate per piece can look attractive until extra charges are added. For imported goods, your true cost is the landed cost: everything you pay until the goods are on your shelf.
What Goes Into Landed Cost
- Product price
- International freight and insurance
- Customs duty and applicable taxes
- Port, clearance and agent charges
- Transport within India
- Packaging, labelling and handling
- Currency difference if you pay in a foreign currency
- Damaged, short or rejected pieces
Simple Formula
Landed cost per piece = Total of all costs above / Number of sellable pieces
Use sellable pieces in the formula, not total pieces. Damaged or unsellable pieces raise the cost of the rest.
Example To Understand The Idea
| Item | Example Amount |
|---|---|
| Product cost | 100,000 |
| Freight, duty, clearance, transport | 35,000 |
| Total cost | 135,000 |
| Sellable pieces | Divide total cost by this number |
These numbers are only to show the method, not real rates. Duties and charges change, so get a written quote.
Ask For A Delivered Price
A supplier with stock in India can often give a delivered price, which is easier to compare. Always ask whether tax and transport are included.
Get A Clear Price Quote
Ask BluePeak Global for current wholesale rates and what is included on the B2B page.
