Estimating Landed Cost per Saleable Unit
For an internal purchasing estimate, divide the goods cost and the order-specific costs you have chosen to include by the number of saleable units.
Practical Considerations
Write down the scope of the estimate. A simple worksheet may include goods, shipping, handling and an agreed service charge, but it is not a substitute for accounting or tax treatment appropriate to the business.
Suggested Procedure
- Add the included order costs.
- Use complete saleable units as the denominator.
- Label omitted or unresolved costs.
Illustrative Example
If goods cost $240 and the included additional charges total $60, a shipment of sixty saleable units has an estimated included cost of $5 per unit.
Points to Check
Do not treat all received units as saleable before checking the delivery. Damaged or incomplete units can change the practical result and should be recorded separately.
Working Record
Use the landed cost worksheet to put the relevant information in one place. You can complete it in your browser, save a text copy or print a blank form for use in the store. Entries are not submitted to NoveltyPlex.
Open the landed cost worksheet »
Related Information
Examples are provided for planning purposes and are not quotations, promised results or terms of sale. Confirm the arrangements for each purchase with the parties involved.