Landed cost price
Landed cost price, also known as total landed cost, is the total price of a product once it has arrived at the buyer’s location, including the cost of transportation, customs duties, taxes, insurance, and any other costs associated with getting the product to its final destination.
Calculating the landed cost price is important for businesses to determine the true cost of importing goods and to accurately price their products to ensure profitability. It helps businesses make informed decisions about sourcing, pricing, and selling their products.
For example, if a company imports a product for $100, pays $20 for shipping, $10 in customs duties, and $5 in taxes, the landed cost price of the product would be $135.
Businesses can use landed cost software or formulas to accurately calculate the landed cost price of their products and make strategic decisions based on this information.
Examples of costs included in landed cost price:
- Transportation costs
- Customs duties
- Taxes
- Insurance
- Handling fees
Understanding and accurately calculating the landed cost price is essential for businesses involved in international trade to ensure profitability and make informed decisions.
For more information on landed cost price, you can visit Wikipedia.