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Landed cost

EXW, DDP and landed cost: why the cheapest supplier quote can cost more

Supplier prices are easy to put in a spreadsheet. They only become comparable once the missing responsibilities are priced in as well.

Two quotations for the same product can describe different transactions. One includes export packing, testing and tooling maintenance on a stable specification. The other leaves those for later and assumes the factory's standard. Incoterms do not fix this. EXW can leave collection, export handling and origin charges out of the comparison. DDP can hide who acts as importer, how duty is calculated and whether the structure is compliant.

We line up the product first: material, dimensions, performance, packaging, warranty and quality level. Then come tooling, testing, inspection, local transport, export charges, freight, insurance, duty, customs clearance and delivery. A slightly higher landed cost may still buy a shorter production cycle, better evidence or lower defect risk. The figure that matters is what it costs to receive goods we can sell and support.