What belongs here
- Unit purchase price from the supplier
- Factory-ready or ex-works cost assumptions
- The real cost per unit, not a rounded headline price
Guide
Supplier price is almost never the real floor. Landed cost is the number that matters once freight, duty, and import overhead are attached to the unit. If you price from supplier cost alone, the missing layers usually show up later as margin disappointment.
Step 01
Supplier cost is only the opening number. It tells you what the factory or vendor charges, not what it costs to make the unit saleable in your actual business.
Step 02
Freight is part of the unit cost even if it lands on a different invoice. If the item cannot reach your warehouse without that spend, it belongs in landed cost.
Many products look healthier than they are because freight is kept in a separate mental bucket. Pulling it into the unit economics early gives you a cleaner price floor.
Step 03
Duty, brokerage, inspection, insurance, and similar overhead often feel secondary until they are spread across the batch. At that point they become very real, and they belong in the unit economics before the selling price is set.
Step 04
Once the full landed cost is clear, use that number to calculate the selling price required for the margin you actually need. That keeps the product from entering the market with a weak floor.
Rework landed cost whenever freight, duty, or batch size moves. The product can stay in the same catalog while the economics underneath it change materially.