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How to calculate landed cost

Jul 2026 · 9 min read

Unit price is not the price. Build a true landed-cost model step by step.

Sourcing across borders rewards preparation. The teams that consistently land good outcomes treat every requirement as a structured brief, not a message — and they measure suppliers on true landed cost and reliability rather than headline unit price.

Why it matters

The cheapest quote on paper is frequently the most expensive once shipping, customs and delays are accounted for. Building a clear model up front means you compare like for like and avoid surprises after the deposit is paid.

  • Define quantity, target price, destination and delivery window explicitly.
  • Shortlist on capability and capacity, not just price.
  • Verify the supplier before you commit — business, identity and factory.
  • Normalise every quote to landed cost before deciding.

A practical checklist

Start narrow, verify hard, and keep everything in one thread. When you can see the full picture — price, terms, verification and history — the right decision usually becomes obvious.

  1. Write the requirement as a structured RFQ.
  2. Invite three to five verified suppliers.
  3. Compare landed cost and lead time side by side.
  4. Negotiate within pre-set limits.
  5. Order with milestone-based, protected payment.

Sourcely automates most of this — from parsing your requirement to ranking suppliers and comparing quotes — so you can focus on the decision instead of the busywork.

Ready to source smarter?