How to Calculate Landed Cost

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How to Calculate Landed Cost
LANDED COST CALCULATOR FORMULA 
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In small and medium businesses there are many
small factors that influence healthy profits
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What Exactly is Landed cost?
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Landed cost is the total expenditure involved in
buying a product and shipping charges for
importing it to your warehouse
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Product cost
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 Shipping Costs associated with crating,
packing, handling, and freight Customs Duties,
taxes, tariffs, VAT, brokers fees, harbor fees
Risk Insurance, compliance, quality, safety
stock cost Overhead Purchasing staff, due
diligence cost, travel, exchange rates  Landed
cost
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Why Should I Care About Landed Costs?
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• Gives you the insight on the actual amount paid
  to get your hands on the product
• Extremely necessary to precisely disintegrate the
  cost price as it will help the seller to take
  better decisions
• Without any idea of landed cost, the store owner
  will have no choice but to believe the data in
  the spreadsheets

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Importance of Landed Cost
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• Ensure estimated profit on the product by marking
  the price such that you can sell it with
  attractive discounts
• Easier to figure out the steps at which you can
  cut yourself some slack. This way savings can be
  done where possible
• Precise data on landed cost can make you
  far-sighted, and therefore you take decisions

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Calculation of Total Landed Cost
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• It starts with determining the essential
  components that make up the Total Landed Cost.
• It includes cost price of the product paid to the
  supplier, freight costs.
• If the shipment is imported overseas then custom
  duties and currency factor.
• Other optional costs are insurance, storage costs
  etc. which depend upon the nature of freight

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MORE INFORMATION
https//emergeapp.net/sales/landed-cost/