Quick answer
An import cost calculator helps businesses calculate landed cost by including purchase price, freight, duty, VAT, and handling.
How it works
- Define the commercial question clearly.
- Calculate the number using a simple framework.
- Check the result against cost, margin, timing, or market reality.
- Use a tool to test decisions before acting.
Common questions
What does this mean in practice?
This page is designed to turn a business concept into a simple decision-making framework for UK SME owners.
Imported products often look profitable until freight, duty, VAT, and handling are added properly.
This guide explains landed cost and how to avoid underpricing imported goods.
What landed cost means
Landed cost is the full cost of getting a product into your business ready for sale. It includes purchase cost, shipping, duty, VAT, handling, and in many cases storage or inland transport.
Why businesses get import pricing wrong
The biggest mistake is pricing from supplier cost only. If freight and duty are not included, the margin calculation is immediately wrong.
What should be included
- Supplier price
- Freight
- Insurance if relevant
- Duty
- Import VAT
- Handling and delivery
- Storage where material
Simple example
A product bought for £8 abroad may easily land at £12 or more once freight, duty, VAT timing, and handling are considered.
How LumixAI helps
The LumixAI Import Cost Calculator helps UK SMEs calculate true landed cost so pricing decisions are based on reality rather than assumption.