Buyer guide ·
Landed cost: how to compare a factory quote with a local supplier's price
A step-by-step landed cost calculation so you can compare an overseas factory quote with a local delivered price fairly, including the hidden costs buyers miss.
A factory price can look far lower than a local supplier's. The fair comparison is landed cost: everything it takes to get the goods to your door, ready to use.
The landed cost stack
- Product cost (per the factory quote and its Incoterm)
- Origin charges: inland trucking, export clearance, terminal handling
- Ocean freight (FCL or your share of LCL)
- Cargo insurance
- Duty and any surtax for the tariff item and origin
- Customs brokerage and entry fees
- Destination port, terminal and container charges
- Inland delivery to your site
- GST (usually recoverable for registered businesses)
Costs buyers miss
- Overage and damage allowance: order a few percent extra on breakable or cut-to-fit items.
- Money tied up: deposits are paid weeks before goods arrive.
- Samples and inspection.
- Storage if goods arrive before the job is ready.
When local wins
Urgent, small or highly variable needs are often better bought locally. Factory-direct wins on repeat items, larger quantities and planned projects.
A simpler route
We quote a single delivered cost that already includes freight, duty and delivery, so you can compare it directly with a local price. Send us a list to compare.
