Landed cost without guessing: a working model for importers

A single 'shipping' line hides the costs that vary most. Keep product, international freight, insurance, duty, brokerage, port and terminal fees, inland transport and payment costs in separate fields. Each one can then be tested and updated without rebuilding the whole model.

Duty rate, exchange rate, freight quote, payment terms and expected defect rate are assumptions, not facts. Label them, date them and note who provided them. When the model is reviewed later, the team should be able to tell which inputs changed and why.

Tariff classification determines duty treatment and can change with the product, its components or the destination. A planning model should show the rate being used and flag it for confirmation. Nexus does not classify goods or provide customs advice; a licensed customs broker should confirm the entry.

A per-unit model can look healthy at full-container volume and fail at the quantity the business can actually order. Run scenarios at minimum order quantity, expected volume and a slower-selling month. Include storage, obsolescence and the cost of capital tied up in inventory where those are material.

Freight and exchange rates move. A model that is only updated when someone remembers becomes a historical document. Assign an owner and a review cadence, and connect the model to the pricing decision so changes are not discovered after a quote is sent.