Landed cost planning and margin checks (EXW/FOB assumptions)
What this service is
Landed Cost Planning & Margin Checks is a commercial control service for fashion manufacturing and e-commerce production. We build a clear landed cost (COGS) model so you know the true cost per unit before you commit to sampling or bulk. We standardise assumptions across EXW and FOB quotes (and other Incoterms where relevant), then pressure-test pricing and margin so you can make confident supplier and range decisions early—not after production is locked.
Where brands use it
Supplier selection and RFQs, first production runs, cost-down projects, seasonal drops and reorder programs, wholesale vs DTC pricing, new markets (different duties/taxes), freight volatility periods, and higher-risk styles where costs can swing (complex trims, print/sublimation, embroidery, premium fabrics, low MOQs, or tight lead times).
What you receive
A decision-ready landed cost breakdown that maps your factory quote basis (EXW/FOB) to true landed COGS: unit cost by quantity breaks, packaging/cartonisation assumptions, freight assumptions (air vs sea, dimensional weight/cubic), insurance where applicable, origin and destination charges, customs clearance/brokerage, duties/taxes (market-dependent), and any one-off allowances such as tooling/setup or testing/compliance if required. You also receive margin checks against your target retail/wholesale prices, plus sensitivity notes showing what moves the cost most (MOQ changes, freight changes, duty changes, packaging changes) so you can protect margin before bulk production.
How delivery works
We start by confirming your selling model and targets (DTC/wholesale, target gross margin, price architecture, and intended markets). Then we normalise the quote basis so comparisons are like-for-like (EXW vs FOB and what each quote includes), build the cost stack from factory price to landed COGS, and run scenarios across quantities, freight modes, and duty/tax settings. Finally, we summarise commercial viability, highlight cost drivers, and provide clear recommendations for pricing, supplier choice, and whether the style should move forward before bulk is released.
What we need from you
Style list and quantities, supplier quotes (or RFQ outputs), your preferred Incoterm basis (EXW/FOB—if unsure we’ll recommend), intended delivery markets, target retail/wholesale prices and margin expectations, packaging/pack-out assumptions (units per carton, carton size/weight if known), and any known requirements that affect cost (testing/compliance, special trims, print/embroidery methods, or urgent lead times).
FAQ
What’s the difference between EXW and FOB? EXW is factory-gate pricing (most logistics costs sit with you). FOB typically includes delivery to port and export handling, but inclusions vary—this service standardises assumptions so quotes compare fairly.
Can you compare suppliers accurately? Yes — we normalise Incoterms, inclusions/exclusions, packaging assumptions, and quantity breaks so you’re not comparing different scopes.
Do you include freight and customs costs? Yes — we model freight assumptions (air/sea, cubic/dimensional weight) plus origin/destination charges and brokerage, with all assumptions documented clearly.
Do you include duties and taxes? We include market-based duty/tax assumptions and show them transparently. Final amounts depend on classification and local rules, so you always see what was assumed.
Will this help pricing and margin? Yes — we validate landed COGS against target pricing early so you avoid launching products that can’t hit margin targets.