Landed cost is the number that determines whether an imported door order is profitable. Many first-time buyers focus on the factory FOB price and forget the other costs that appear before the doors reach their warehouse. This guide explains how to calculate landed cost accurately so you can price your doors with confidence.
What Is Landed Cost?
Landed cost is the total amount you pay to get one door, or one container of doors, from the factory to your warehouse. It includes the product price, export packaging, international freight, insurance, import duty, customs brokerage, port charges, and inland delivery.
The basic formula is:
Landed cost = FOB price + freight + insurance + import duty + local clearance + inland transport
Step 1: Start with a Clear FOB Price
FOB means Free on Board. The seller pays for the goods to be delivered to the departure port in China and loaded onto the vessel. For a container of entry doors, the FOB price normally includes the doors, export cartons or wooden crates, and the local trucking from the factory to the port.
Ask your supplier to list what is included. At SJ DOORS, our quotations include the product price, export packaging, and delivery to the named Chinese port so there are no surprises later.
Step 2: Add International Freight
Doors are heavy and bulky, so sea freight is normally the most economical option. A 20-foot container may carry 40-60 doors depending on size, packaging, and configuration. A 40-foot high-cube container may carry roughly double that number.
Request a freight quotation based on the actual number of doors, not just the container size. If you are shipping a smaller order, LCL freight is possible but usually has a higher cost per door because of shared container handling.
Step 3: Include Insurance
Marine cargo insurance is a small cost that protects a large investment. Insurance is usually calculated as a percentage of the commercial invoice value, often around 0.3%-0.8% depending on the route and product type. Do not skip it, especially for a first shipment or a high-value custom order.
Step 4: Calculate Import Duty and Taxes
Every country has a different import duty rate for doors. The rate depends on the product material, HS code, and the trade agreements between the origin and destination country. Work with a customs broker to confirm the correct classification before the shipment arrives.
Common categories include:
- Wooden doors โ often classified under HS heading 4418
- Steel doors โ often classified under HS heading 7308
- Aluminum doors โ often classified under HS heading 7610
Your broker should also tell you whether VAT, value-added tax, or other destination charges apply. In some markets, duty is calculated on the CIF value, which includes the product, freight, and insurance.
Step 5: Add Local Clearance and Delivery
After the container arrives, you still need to pay terminal handling, customs brokerage, port storage if there is a delay, and trucking to your warehouse. These costs vary by port and country. Get an estimate before ordering so the final landed cost does not surprise you.
Landed Cost Example
| Cost Item | Example per Door |
|---|---|
| FOB price | $180 |
| Sea freight allocation | $28 |
| Insurance | $2 |
| Import duty at 15% | $31 |
| Clearance and inland delivery | $12 |
| Total landed cost | $253 |
Use Landed Cost to Build Your Price
Once you know the landed cost, add your target gross margin and local sales costs. A common wholesale approach is to add 30-45% to the landed cost for distributor pricing. If you sell directly to projects or retail customers, the price should also cover warranty support, marketing, and the cost of carrying inventory.
Do not compare supplier quotations on FOB price alone. A slightly higher FOB price may be cheaper overall if the factory provides stronger packaging, faster loading, better documentation, and more reliable support. Review our product range or request a full quotation to compare the complete cost structure.
Final Checklist
- Confirm FOB includes export packaging and port delivery
- Get an ocean freight quote based on actual container volume
- Confirm the correct HS code and duty rate
- Add marine insurance to the invoice value
- Estimate local clearance, port charges, and final delivery
- Keep a buffer of 3-5% for exchange rate and port delays
A clear landed-cost calculation turns a vague import idea into a business plan. Contact SJ DOORS for transparent factory pricing, packing information, and export documents that make your calculation straightforward.
Build a Practical Landed-Cost Model
A reliable landed-cost calculation starts with the approved product specification, not a preliminary factory price. Enter the unit price, quantity, packing cost, freight, insurance, customs value, duty rate, port charges, customs broker fees, inland transport, unloading, and any bank or currency charges. Keep product cost and logistics cost separate so you can compare suppliers fairly.
Container Utilization
Doors, frames, glass, and hardware create irregular loading patterns. Ask for carton dimensions, weight, stackability, and estimated quantity per container. Poor loading can increase freight per door even when the factory price is lower.
Duty and Customs Value
Customs treatment depends on product classification, origin, destination, and local regulations. Confirm the declared value includes the correct transaction elements and that the freight and insurance treatment is understood. A qualified broker should verify the final calculation.
Cost-Control Actions for Importers
- Standardize dimensions and hardware to improve production and loading efficiency.
- Combine models or project phases into one shipment where storage allows.
- Compare sea, rail, and door-to-door delivery using total transit cost.
- Confirm whether spare parts and accessories are included.
- Plan unloading equipment and storage before arrival.
- Track damage, shortage, and rework costs in the landed-cost model.
Price vs Total Value
The lowest quotation may create higher installation labor or replacement cost. Stronger packing, clearer labeling, better hardware, and complete accessory kits can reduce site delays. For repeat business, consistent quality and predictable lead time often matter more than a small unit-price difference.
FAQ
Should insurance be included in landed cost?
Yes. Include marine insurance or the applicable transport coverage, even if the risk seems low, because door and glass replacement can be expensive.
How often should the model be updated?
Update freight and charges for every shipment. Duty, fuel, port, and inland trucking costs can change between orders.
Can you provide FOB, CIF, and DDP quotes?
Supported terms depend on destination and freight availability. Ask for a written scope showing what each Incoterm includes.