Trade · 6 pages · 12 min
Why a cheap supplier far away can be expensive
A low factory price can grow once freight, duty, inventory, and a missed delivery are added in.
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From the opening
The price at the factory gate is only the first number in a chain that ends when the goods are on the buyer's dock and fit to sell. Freight, insurance, duties, brokerage, longer inventory, and the cost of a quality miss all sit between that gate and a usable unit. The opening covers factory price is not landed, freight and duty sit in between, and transit stock has a cost.
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Inside
- Factory price is not landed
- Freight and duty sit in between
- Transit stock has a cost
- A bad lot pays freight twice
- Where the idea stops applying
- A distinction worth keeping
Sources
- Landed cost of imported goods
- Ex-works price versus delivered cost