The landed cost stack: what a laptop really costs by the time it clears

Distributors who price off the ex-works figure alone get squeezed on their first consignment. Building the landed cost stack properly is the difference between a sustainable margin and a working-capital trap.

Start with the ex-works unit price and add freight and insurance to arrive at a CIF value. Air freight protects launch timing but carries a heavy per-unit cost on a boxed notebook; sea freight is far cheaper per unit but adds weeks and requires you to fund inventory for longer.

On the CIF value, apply import duty and the applicable levies and charges assessed at clearance. Then add the conformity costs — product registration and PVoC inspection fees at origin — and the terminal, handling and clearing agent charges at the port.

Next, add finance. If the consignment is funded on a facility or a letter of credit, the cost of money over the shipping and clearing window is a real per-unit cost, and it grows with any delay. This is the line most first-time importers omit.

Finally, add in-country logistics to your warehouse, plus a warranty reserve. We advise partners to hold a per-unit reserve for warranty swaps and parts rather than absorbing failures out of the trading margin — it makes the true margin visible.

Only after all of that should you set trade and retail prices. Confirm current duty rates, levies and PVoC fees with your clearing agent and dealer bank before each consignment, since rates and charges change.