Landed Cost, Explained: What You Really Pay Beyond the Unit Price

The single most common margin mistake in wholesale is confusing the unit price with the cost. The number on the line sheet is only the first line of a longer sum, and the buyers who thrive are the ones who add up the whole thing before they commit.

Landed cost is the true price of getting a garment onto your rail, ready to sell. It starts with the unit price, then adds freight, any duties or taxes, payment and currency costs, and a realistic allowance for the pieces that will not sell at full price. A keen unit price with heavy freight behind it can easily cost more, all in, than a dearer price close to home.

Currency is the quiet variable. When you buy across borders, the exchange rate on the day — and any fees baked into the payment — move your real cost after you have agreed the price. Building a small buffer for this into your maths keeps a good deal from turning marginal.

Then there is the cost of things going wrong: a parcel that arrives short, off-ratio, or not as described. Unprotected, that is a pure loss; protected, it is recoverable — which is itself part of the cost calculation.

On VESTRA, prices, pack structure and condition are stated up front and every order is escrow-protected, so the gap between the headline price and your true landed cost is smaller and far more predictable.