Price an Imported Product
Turn a supplier quote into a true landed cost, a defensible margin, and a target buy price you can negotiate to.
For: An importer or distributor deciding whether to buy a product — and at what price — before committing to a supplier or an MOQ.
Use when: You have a target sell price (or channel) and one or more supplier quotes, and need a defensible go/no-go buy price before you negotiate hard or place a PO.
- The target sell price isn't realistic for the channel or the competition.
- The MOQ is far larger than a realistic sell-through window — dead-stock risk.
- Shelf life can't survive transit, clearance, and sell-through.
- The margin only works on optimistic freight, stable FX, or zero delay.
- Duty, import VAT, or preferential origin can't be established credibly.
- Set the target sell price and channel role
- Strip out discounts, fees, and returns
- State the margin you need to clear
- Sanity-check against real competitor prices
· Commercial reality
Is there a realistic price with a viable margin?
Go — A realistic price supports your required margin.
Hold — Margin is thin — revisit the price or positioning.
Stop — No realistic price clears a viable margin.
· Comparable quote
Are the quotes truly comparable?
Go — Every quote is the same unit, currency, Incoterm, and validity.
Hold — Exclusions or terms are missing — get them in writing.
Stop — Quotes aren't comparable, or the supplier isn't credible.
· True cost
Is the landed cost complete and credible?
Go — Landed cost is complete and duty, VAT, and origin are established.
Hold — A cost component is still a guess — refine it.
Stop — Duty, VAT, or origin can't be established credibly.
· Resilience
Does the margin survive FX, freight, MOQ, and shelf life?
Go — Margin holds under realistic FX, freight, and delay, and the MOQ fits.
Hold — It only works optimistically — renegotiate or split the MOQ.
Stop — MOQ, shelf life, or cash can't absorb the buy.
· Final decision
Buy at this price?
Go — Ceiling met and every gate passed — GO at your buy price.
Hold — A gate is on hold — renegotiate before you commit.
Stop — A gate is a stop — no-go on this product.
- 1Pricing off the supplier's FOB instead of the landed cost.
- 2Confusing markup with margin — a 30% markup is not a 30% margin.
- 3Ignoring import-VAT cash timing in the cash-flow plan.
- 4Buying an MOQ the channel can't clear before it ages out.
- 5Using today's FX rate with no buffer.
- 6Forgetting the shelf-life clock starts at production, not arrival.
The supplier's €12.40 FOB is not the price you sell from.
- Supplier FOB€ 12.40 / unit
- + freight + insurance+ € 1.15
- + duty + clearance+ € 0.94
- + FX buffer (3%)+ € 0.29
- True landed cost€ 14.78
- Channel sell price€ 22.00
- Margin at landed cost32.8%
Decision record
Record your outcome — a static, no-login summary you can copy, print, or screenshot.
- Target sell price + channel
- The price and role you're pricing for
- Landed cost / unit
- With no placeholder components
- Required vs achieved margin
- As a percentage
- Target buy price + ceiling
- The most you can pay the supplier
- MOQ + months of sell-through
- The dead-stock check
- Shelf-life window
- After transit and clearance
- FX buffer applied
- As a percentage
- Decision
- GO / HOLD / NO-GO
- Key assumptions + owners
- Who owns each risk