A Simple Guide to Landed Cost: Calculating the Real Price of Your Products

A Simple Guide to Landed Cost: Calculating the Real Price of Your Products

From The Business of Apparel by Rachel Erickson

June 4, 2026 · 18 min · Episode 170

About this episode

Rachel Erickson explains how to accurately calculate landed costs for apparel products to protect margins and build a profitable business.

If you're not accurately calculating your landed costs, your apparel brand could be losing money without you even realizing it. In this episode of the Business of Apparel podcast, Rachel explains exactly what landed cost means and how to calculate it for apparel products in a simple, practical way. She shares why understanding the true cost of producing and importing your garments is essential for protecting your margins and building a profitable business. 📝 Today We're Covering: What landed cost means in the apparel industry The difference between CMT, FOB, and DDP factory pricing How to calculate garment costs, shipping fees, tariffs, and duty rates How unexpected customs bills can hurt cash flow and profitability Why understanding your margins helps you build a more sustainable business Whether you are producing your first collection or scaling an established apparel brand, this episode will help you better understand your true production costs so you can price confidently, protect your profits, and avoid costly surprises. ➡️ Your Next Steps: Get your Free Initial Line Planning Template here: https://www.thebusinessofapparel.com/gift Join The Board here…

People in this episode

Host: Rachel Erickson

Topics covered

  • landed cost
  • apparel pricing
  • production costs
  • profit margins
  • importing garments

Keywords

  • landed cost
  • CMT
  • FOB
  • DDP
  • tariffs
  • duty rates
  • customs bills
  • cash flow
  • profitability

Mentioned in this episode

Organizations: The Business of Apparel

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