0:00Landed cost is built up in layers.
0:03Here is every layer, in order.
0:06Start with the factory price.
0:08Add inland freight to the port of origin.
0:11Add international freight and insurance.
0:14Then add duty,
0:16any other import taxes, and port and terminal charges.
0:21Add your broker and forwarder fees, and inland delivery to your own warehouse.
0:26Finally, divide the whole shipment total by the number of units.
0:31That is your true cost per unit.
0:34Do this calculation before you place an order.
0:37Use realistic estimates for every line, not just the ones you already know.
0:43A model built only from the factory price and a rough freight guess will
0:48consistently understate your real cost.
0:52Work out landed cost before every order.