Landed Cost

Landed cost adds every cost between the supplier and the warehouse — international freight, insurance, customs duty, and brokerage or handling fees — to the raw unit cost. It's common for these additions to raise the true per-unit cost 20-40% above the supplier invoice price.

Landed cost is a pricing input, calculated before a purchase decision; COGS is an accounting output, recorded after the fact. The two are related but not interchangeable — a pricing model built on supplier price alone, without landed cost, systematically understates true cost and overstates margin.