Landed Cost
Landed cost is the all-in cost to get a unit into your warehouse — ex-factory price plus freight, duty, tariffs, and handling. It is the true cost basis for margin, not the quoted FOB price.
Planning margin off FOB instead of landed cost systematically overstates profitability — freight and duty can move a unit’s cost by double digits. Target margins should be set against landed cost from the development stage.
Landed cost feeds gross margin, IMU, and GMROI; an error here compounds through the whole plan.
See also
RetailNorthstar puts these metrics where planning decisions happen — connected to one plan, live against actuals.
Book a Demo →