PRICING AND INVENTORY
How to Calculate the Landed Cost of a Clothing Bale
The price on a quotation is rarely the whole cost of a bale. Packing, transport, unloading and payment charges can add a significant amount before a single garment is ready to sell.
Landed cost is the total of those costs. It is the figure to use when comparing offers and calculating break-even.
THE COST LINES
What to add to the quoted price.
Not every line applies to every order. The point is to check each one, not to assume it is zero.
Bale price
The quoted price for the goods. Check what it already includes.
Packing and loading
Any charge for wrapping, strapping or loading, if not included.
Freight
Transport from the supplier to you, or to your carrier’s pickup point.
Handling at your end
Unloading, local transport from a depot, and any storage charges if goods wait to be collected.
Payment charges
Bank, transfer or currency conversion fees on what you pay.
Taxes and duties
Where they apply to your purchase. They depend on your location and business; confirm them with a qualified adviser.
Preparation
Cleaning, steaming, tags and bags needed before items can be sold.
HYPOTHETICAL EXAMPLE
One order, added up.
Hypothetical figures in units of your own currency, not a quotation or a Balematrix price. Taxes, if any, are left out.
Here the costs on top of the bale price add 1,500, or 30%, to what the bale costs before anything sells.
Hypothetical example only.
| Cost line | Units |
|---|---|
| Bale price | 5,000 |
| Packing and loading | 200 |
| Freight | 800 |
| Unloading and local transport | 250 |
| Payment charges | 50 |
| Preparation | 200 |
| Landed cost | 6,500 |
PER ITEM
Landed cost per usable garment.
Divide by the items you can actually sell, not by the items in the bale.
Landed cost per usable garment = landed cost ÷ usable garments.
- In the hypothetical example, with 260 usable garments: 6,500 ÷ 260 = 25.00 per garment.
- Estimate usable garments as a range; see estimating usable garments.
- Use the result to compare bale offers on the same basis.
GET THE FIGURES
Where each number comes from.
Use quotations rather than guesses wherever you can.
- Ask the supplier what the price includes, in writing; see what to get in writing.
- Get a freight quote for the actual weight and route.
- Check your bank’s charges for the payment method.
- Then take landed cost into your break-even calculation.
NEXT STEP
Need a price to start from?
Send your categories, quantity and delivery location to request a quotation, and check what it includes, including logistics, before you order.
General guidance, not tax, customs or financial advice. Figures are hypothetical; your costs depend on your supplier, route and location.