# Calculate landed cost to compare domestic and overseas suppliers

A side-by-side landed cost model covering freight, duty, inventory carrying, and risk so the cheapest unit price isn't mistaken for cheapest.

- Topic: Data & Analysis
- Framework: RTF
- Level: Standard
- Tags: Sales, Analyze, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/calculate-landed-cost-to-compare-domestic-and-overseas-suppliers

## Prompt

```text
Help me compare the true landed cost of buying the same item from different suppliers.

**Item and annual volume:** [PART, UNITS PER YEAR, ORDER SIZE]
**Supplier options:** [FOR EACH: LOCATION, UNIT PRICE, CURRENCY, INCOTERM, MOQ, LEAD TIME, PAYMENT TERMS]
**Freight costs per shipment:** [OCEAN / AIR / TRUCK QUOTES, IF KNOWN]
**Duty and taxes:** [DUTY RATE, TARIFFS, BROKERAGE FEES - or "unknown"]
**Our inventory carrying cost rate:** [e.g. 20-25% per year]
**Other costs:** [PACKAGING, INSPECTION, TOOLING, TRAVEL, QUALITY RISK]
**Exchange rate assumption:** [RATE OR RANGE]

Build the comparison per unit and per year, including:
- Purchase price converted at my exchange rate.
- Freight, insurance, and handling based on the Incoterm (who pays what).
- Duties, tariffs, customs brokerage.
- Pipeline and safety stock carrying cost driven by longer lead times and variability.
- One-time costs amortized over the volume.
- Payment term cash impact.
- A risk allowance for quality, disruption, or currency moves, clearly labeled as a judgment.

Rules: use only my numbers; mark assumptions [ASSUMPTION] and missing data [ADD]. Duty and tariff rates must be confirmed with a customs broker; flag them [CONFIRM].

Return:
1. A table: Cost element | Supplier A | Supplier B | Supplier C (per unit and annual).
2. The break-even: at what unit price or exchange rate the ranking flips.
3. A sensitivity check on the 3 inputs that matter most.
4. A short recommendation with the non-cost factors to weigh.
```

## What to fill in

- PART, UNITS PER YEAR, ORDER SIZE
- OCEAN / AIR / TRUCK QUOTES, IF KNOWN
- DUTY RATE, TARIFFS, BROKERAGE FEES - or "unknown"
- e.g. 20-25% per year
- PACKAGING, INSPECTION, TOOLING, TRAVEL, QUALITY RISK
- RATE OR RANGE
- ASSUMPTION
- ADD
- CONFIRM

Free to copy and use. From ThinkWithPrompt (https://www.thinkwithprompt.com/), a library of 2,663 curated AI prompts.