Methodology / worked examples
Landed Cost Desk guide
An attractive supplier unit price is not the landed unit cost. Start with the MOQ and planned quantity, convert both goods and freight through the same entered FX rate, then show duty and fees as separate bridge lines before dividing by units.
1. Confirm the MOQ and quote basis
The planner rejects an order below MOQ so a low unit cost cannot hide an impossible order. Freight is entered as one shipment total in the supplier quote currency, not as a per-unit amount.
Goods foreign = supplier unit price × order quantity
2. Convert before applying home-currency fees
The entered FX rate means home currency per foreign currency unit. It converts both goods and freight. Duty is applied to converted goods value in this model, while brokerage and other fixed fees are already home currency.
Landed = goods×FX + freight×FX + duty + fixed fees + payment fee
3. Review the unit economics
Payment fee is applied to the pre-payment-fee total, then landed total is divided by the actual order quantity. Compare the result with selling price only as a gross-margin screen; local costs and taxes still need their own assumptions.
At 100 units, $4 foreign unit price, $120 foreign freight, FX 1.25, 5% duty, $70 fixed fees, and 3% payment fee, landed total is $767.35 and landed unit cost is $7.67.
Limits and assumptions
- FX, duty, fees, classification, and supplier terms are manually entered assumptions, not live rates or customs advice.
- The worksheet applies duty to goods value only and treats entered brokerage/other fees as home-currency amounts; confirm the basis in the actual quote.
- It does not model taxes, storage, insurance unless entered, local delivery, returns, payment timing, case packs, or tiered pricing.