What is landed cost?

SHORT ANSWER

Landed cost is what a unit really costs you once it is in your building and ready to sell — purchase price plus freight, handling, parts and the cost of what could not be sold.

Divide total load cost by the number of units you can actually sell, not the number that arrived.

Landed cost is the number to price against and the number to put into COGS.

For example

$18,000 load + $1,400 freight + $600 parts = $20,000 over 125 sellable units = $160 landed cost each.

Why it matters

Pricing against invoice cost instead of landed cost is the quietest way to run a business at a loss.

The mistake to avoid

Dividing by the manifest count instead of the sellable count.

LAST UPDATED 2026-09-16 · REVIEWED BY REGISTIX OPERATIONS TEAM