Industries · Trade & Manufacturing

Import and distribution

An importer's margin is fixed at the border. Customs duty, freight, LC charges and the exchange rate on the day of payment all belong in landed cost, and pricing that starts from the supplier's invoice quietly gives that margin away.

The questions that decide the numbers

What a import and distribution business needs answered.

  1. 01What does each product really cost once it is on the shelf?
  2. 02How much cash is tied up between the LC and the customer's payment?
  3. 03Which customers and lines earn their credit terms?
  4. 04Is VAT and customs treatment consistent from shipment to sale?

Across trade & manufacturing

Margin here is decided before a single sale is made, in landed cost. Customs duty, freight, LC charges and the exchange rate on the day of payment all sit inside cost of goods, and most businesses price off invoice value instead. Add inventory financed on supplier credit and the result is familiar: profitable on paper, permanently short of cash. The work is usually product-level costing, then pricing and working capital built on top of it.

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