Landed cost calculator
Add the lines on a shipment and the charges that came with it, such as freight, brokerage or duty, and split them across the lines by value or by cases. The split always adds back to the total.
What landed cost is, and why it changes your margins.
Landed cost is what a product costs once it is on your shelf: the supplier's price plus the freight and other charges it took to get it there. When those charges sit in a separate bill and never reach the items, every item looks cheaper than it is and every margin looks better.
How the split works
- By value: each line takes a share of the charges in proportion to what its goods cost. Good when expensive and cheap items share a truck.
- By cases: each line takes a share in proportion to its case count. Good when the cases are similar in size and weight.
Each line's share is rounded to the cent and the last cent goes where the remainder is largest, so the shares add back to the charges exactly.
In APFoodz, freight is carried into the cost of the goods, so the margins on the order desk reflect what the goods really cost.
Questions about this tool.
Should I split freight by value or by cases?
By cases when items are similar in size and weight; by value when a few expensive items share a truck with cheap bulky ones. Whichever you pick, use it every time so costs compare.
Why does landed cost matter?
Freight left in a separate bill makes every item look cheaper than it is, so margins look better than they are.
See it with your own data.
A working session with your customers, your items and your route days. Thirty minutes.