TL;DR
- Trampoline landed cost is the total cost to place saleable inventory at the chosen warehouse boundary, divided across the units that actually arrived saleable.
- The model should include product, origin, ocean freight, insurance, customs value and duty, government and broker fees, destination charges, exams or holds where incurred, inland delivery, inspection, and receiving-related costs included in your boundary.
- Allocate shared costs with a driver that reflects the charge: customs by entered value, ocean and destination space by CBM or container contribution, and unit-specific costs directly to the SKU.
- Container utilization matters as much as the ocean rate. The same 40HQ invoice creates a higher per-unit freight share when packaging changes reduce the number of sellable units loaded.
- Keep landed cost separate from channel cost. Amazon fees, outbound fulfillment, advertising, retail markdowns, warranty, and returns belong below the landed boundary so margins remain explainable.
Why FOB price is not a margin number
A supplier’s FOB price is useful for comparing product and origin costs. It is not the cost a US retailer or ecommerce seller has in inventory. Between the origin port and the warehouse sit ocean freight, insurance, customs, destination handling, inland delivery, inspections, and several event-driven charges that may or may not occur on every shipment.
Trampolines make the gap especially visible because they are bulky. A modest change in carton design or container count can move freight per unit without changing the assembled product. A quote that looks cheaper at FOB can be more expensive at the warehouse when it loads fewer units per 40HQ or needs more domestic handling.
The purpose of a landed-cost model is not to predict every invoice perfectly. It is to place each known line at the correct boundary, expose assumptions, reserve for variable charges, and update estimated values with actuals after receipt. Rocheyard’s wholesale trampoline pricing guide explains the category price bands; this guide builds the cost bridge from supplier quote to landed inventory.
Define the landed boundary before calculating
“Landed” can mean port-cleared, delivered to a warehouse, received into stock, or ready for sale. Two teams can use the same word and produce different numbers. Write the boundary at the top of the model.
A practical wholesale boundary is:
Saleable units received at the named US warehouse, including import and inbound logistics, before channel selling costs.
That boundary includes costs needed to bring the product into inventory. It excludes costs of selling and servicing the product after receipt. The distinction keeps sourcing, logistics, and channel performance visible.
| Usually inside landed cost | Usually below landed cost |
|---|---|
| Product, origin, export packing, ocean, insurance | Marketplace referral and fulfillment fees |
| Duty, government fees, broker, destination handling | Advertising and promotions |
| Drayage or inbound LTL to named warehouse | Outbound parcel or LTL to customer |
| Inspection and shipment-specific receiving charges | Warranty, returns, markdowns, customer support |
| Damage or shortage adjustment before inventory receipt | General overhead and profit |
A business may choose a different accounting policy. Consistency matters more than the label. Do not move costs between boundaries from one quote to another just to make a supplier or channel look better.
The complete landed-cost formula
At shipment level, the model is:
Landed shipment cost = product + origin + main carriage + insurance + import + destination + inland + quality/receiving adjustments
At SKU level:
Landed unit cost = allocated landed shipment cost ÷ saleable units received
The denominator is important. If 260 units shipped but two are damaged beyond sale and one complete set is missing a carton, dividing by 260 understates inventory cost. The model should reconcile ordered units, shipped units, received complete sets, and saleable units according to the company’s accounting policy.
| Cost block | Typical lines | Primary source |
|---|---|---|
| Product | Unit price, accessories, spare parts, private-label setup | Purchase order and commercial invoice |
| Origin | Export handling outside quoted term, documentation, inland origin move | Supplier and forwarder invoice |
| Main carriage | Ocean freight and carrier surcharges | Booking and freight invoice |
| Insurance | Cargo coverage and policy charges | Insurance certificate or forwarder |
| Import | Duty, fees, customs broker, bond allocation | Entry summary and broker invoice |
| Destination | Terminal, documentation, chassis, demurrage/storage if incurred | Carrier, terminal, drayage invoices |
| Inland | Drayage, transload, LTL/FTL, appointments, accessorials | Domestic carrier invoice |
| Quality/receiving | Inspection, rework, disposal, shipment-specific receiving | Inspector and warehouse records |
Trade terms determine which party initially quotes or pays some lines, not whether the economic cost exists. Use Rocheyard’s FOB vs CIF vs DDP guide to map each supplier offer to the same warehouse boundary.
Start with exact product and packaging data
The landed model begins with SKU and carton facts:
- exact model and production version;
- ordered units and mixed-SKU allocation;
- unit FOB or other term price;
- cartons per complete unit;
- outer dimensions, gross weight, and CBM of every carton;
- units and total cartons per container;
- separately packed replacement parts and accessories;
- palletized or floor-loaded assumption.
Do not divide a container rate by a category average when the actual load plan is available. As a Rocheyard planning baseline, round 12–16ft models run about 260 units per 40HQ and kids 10–12ft models about 290–320, but the exact SKU and packaging version control. The detailed calculation is in the carton dimensions and container loading guide.
For a mixed container, one unit of a bulky model consumes more freight capacity than one compact model. Equal freight per unit may therefore distort SKU margin. Allocate space-driven costs by each SKU’s CBM contribution when reliable carton data exists.
Calculate customs value and duty separately
Duty is not a generic percentage to copy from another importer’s spreadsheet. Classification, customs value, country of origin, trade remedies, product description, and transaction facts determine the entry.
The USITC Harmonized Tariff Schedule publishes current tariff classifications and rates. US Customs and Border Protection publishes importing guidance and makes clear that the importer of record remains responsible for entry accuracy even when using a broker. Work with a licensed customs broker on the exact products and current rules.
Model duty as its own formula:
Estimated duty = applicable customs value × applicable rate(s)
Keep the classification and rate effective date beside the estimate. If a mixed container has products with different classifications or values, calculate them by line rather than applying one blended rate to the full invoice.
Other import lines should stay visible: Merchandise Processing Fee where applicable, Harbor Maintenance Fee for relevant ocean entries, bond cost or continuous-bond allocation, broker entry fee, and agency-related charges. Do not hide them inside “miscellaneous freight,” because they scale differently and need different updates.
Model ocean freight as a dated scenario
Ocean freight changes by route, season, carrier capacity, equipment, contract, and booking date. A useful model stores the quote date, validity, origin, destination port, container type, included surcharges, and free-time assumptions.
Use three values during planning:
- Base case: the current written quote for the expected cargo-ready window.
- Higher case: a management buffer for rate movement or less favorable routing.
- Actual: the booked rate and final carrier invoice after shipment.
Do not average a rate from six months ago into a current order without explanation. The model should show when the number was sourced and which event will trigger an update.
Container utilization is a separate lever from rate. If a 40HQ costs the same but the loading count falls from 260 to 230 because of packaging, the ocean share per unit rises by about 13% before any rate change. That is why carton design and freight negotiation belong in the same landed-cost discussion.
Add destination charges before cargo arrives
Destination invoices are where many first-time models fail. Port-to-port freight does not place a container at the warehouse. Build a destination checklist before booking:
- arrival and carrier documentation fees;
- terminal handling and port-related charges;
- customs broker and bond;
- customs or agency exam allowance;
- chassis and drayage;
- pre-pull, yard, waiting, storage, demurrage, or detention where incurred;
- transload or devanning;
- LTL or FTL from transload point to warehouse;
- appointment, liftgate, limited-access, residential, and redelivery charges;
- warehouse unloading and shipment-specific receiving.
Not every line will occur on every order. The model needs a known quote for routine lines and a clearly labeled reserve or scenario for event-driven lines. Zero is an assumption and should be visible as one.
Rocheyard’s LTL freight guide explains how density, freight class, ZIP pair, and accessorials affect the domestic leg. Use the actual destination type; a commercial warehouse with a dock and a residential storage address are different freight events.
Allocate shared costs with the right driver
A mixed-SKU container requires allocation. Using one method for every charge is easy but not always accurate.
| Cost | Useful allocation driver | Reason |
|---|---|---|
| Product and SKU setup | Direct to SKU | The invoice identifies the item |
| Duty | Customs value and classification by line | Legal calculation follows entered item value |
| Ocean, container handling, drayage | CBM or load contribution | Trampolines are generally volume-bound |
| Cargo insurance | Insured value | Exposure follows declared value |
| Per-carton receiving | Carton count | Warehouse labor follows handled cartons |
| Per-unit inspection or labeling | Units checked or processed | Work follows unit volume |
| General entry fee | Value, line count, or consistent policy | Choose and document a stable method |
The objective is decision quality, not theoretical perfection. Use drivers that reflect how the cost was created, document them, and apply them consistently across suppliers and periods.
An illustrative landed-cost worksheet
Consider a hypothetical mixed trampoline container with 250 complete units. The figures below are arithmetic examples only, not a Rocheyard quote or current freight offer.
| Line | Illustrative amount | Model treatment |
|---|---|---|
| Product and included origin cost | $45,000 | Direct by SKU invoice value |
| Inspection and origin adjustments | $700 | Allocate by units or inspection work |
| Ocean freight and insurance | $5,000 | Allocate by SKU CBM contribution |
| Duty and government fees | Calculated separately | By classification and customs value |
| Broker and destination charges | $2,300 | Allocate by value/CBM under policy |
| Drayage, transload, inland delivery | $3,500 | Allocate mainly by CBM/cartons |
| Shipment-specific receiving | $750 | Allocate by cartons or units |
Before duty, the illustrated shipment total is $57,250, or $229 per ordered unit if all 250 arrive saleable. Duty and any event-driven charges still need to be added. If only 247 complete saleable units are received, the same pre-duty cost is about $232 per saleable unit. The example shows why the denominator and reconciliation matter.
For a real model, replace every estimate with invoice actuals after receipt and preserve the original estimate beside it. The variance explains whether performance changed because of product price, rate, utilization, customs, destination events, or receiving loss.
Keep channel economics below the landed line
Landed cost answers what the inventory cost at the warehouse. It does not answer whether Amazon FBA, FBM, a retail store, or a wholesale resale program is profitable.
After landed cost, add channel-specific lines:
- outbound fulfillment and final-mile delivery;
- marketplace commissions and storage;
- payment processing;
- advertising and promotion;
- returns and return freight;
- warranty and replacement parts;
- retail labor, assembly, local delivery, and markdowns;
- overhead and target contribution margin.
The Amazon-specific chain is covered in Rocheyard’s Amazon FBA seller guide. Retailers should connect landed cost with the assortment and service model in trampolines for hardware stores and garden centers.
Common landed-cost mistakes
- Calling FOB price landed cost. The largest logistics and import blocks are missing.
- Comparing different Incoterm boundaries. Normalize FOB, CIF, and DDP to one named warehouse.
- Using an old freight rate with no date. Main-carriage estimates need route, validity, and cargo-ready assumptions.
- Applying one duty rate to every product. Classification and customs value need exact-item review.
- Dividing all shared costs equally per unit. Bulky SKUs should carry their actual container contribution.
- Leaving destination events at zero. Show a scenario or reserve for exams, storage, and delays even if none occurs.
- Using shipped units as the denominator without reconciliation. Missing cartons and unsaleable damage affect inventory cost.
- Mixing selling costs into landed cost inconsistently. Keep the inventory boundary stable, then add channel economics below it.
- Never replacing estimates with actuals. A model improves only when broker, carrier, and warehouse invoices are reconciled.
What Rocheyard sees in landed-cost buyer patterns
Across recent quoting activity, Rocheyard sees stronger buyers ask for the fields behind the price: carton-level dimensions, loading count, named trade term, port assumption, and destination ZIP. Those inputs let them compare landed units instead of supplier headlines.
Rocheyard also sees mixed-SKU buyers improve decisions when they allocate freight by container contribution. A 15ft model, compact kids unit, and replacement-part carton do not consume equal cube. Assigning the same freight amount to each unit can make one SKU appear stronger and another weaker than they are.
Rocheyard returns model-level quotes within one US business day and accepts mixed-SKU containers from 30 units per SKU. Across 800+ 40HQ-equivalent containers and 200,000+ units shipped, the reliable process is to begin with a transparent FOB/product basis, add dated logistics scenarios, then replace estimates with actual shipment records after receipt.
Frequently asked questions
What is included in trampoline landed cost?
At a warehouse-received boundary, include product, origin, ocean, insurance, duty and import fees, broker, destination handling, inland delivery, inspection, and shipment-specific receiving or loss adjustments. State the boundary so every quote uses the same definition.
How do I calculate landed cost per unit?
Add all costs inside the defined landed boundary, allocate shared costs to each SKU using appropriate drivers, and divide by complete saleable units received under the company’s accounting policy.
Should freight be allocated by unit, value, weight, or CBM?
Use the driver that creates the charge. For volume-bound trampoline ocean and drayage costs, CBM or container contribution is usually more useful. Allocate duty by customs value and classification, insurance by value, and handling by cartons or units.
How do I estimate customs duty?
Confirm exact classification, customs value, origin, and current trade measures with a licensed customs broker, then calculate by line. Use the current USITC HTS and keep the rate effective date in the model.
Are Amazon fees part of landed cost?
Usually no. Landed cost ends when inventory reaches the chosen warehouse boundary. Amazon referral, fulfillment, storage, advertising, returns, and outbound costs belong in the channel-margin model below landed cost.
Why did actual landed cost exceed the quote?
Common causes are freight changes, lower container utilization, classification or duty differences, destination charges, exams, storage, accessorials, packaging changes, and fewer saleable units received. Estimate-to-actual reconciliation identifies the cause.
Can I compare FOB and DDP prices directly?
No. Extend both to the same named destination and separate every included and excluded line. Also verify the importer-of-record and documentation structure behind DDP before treating it as a complete delivered number.
Next steps
Create one worksheet with estimate, booked, and actual columns. Record source, date, route, trade term, allocation driver, and owner for every line. Reconcile the sheet after each receipt and use the variance to improve the next quote.
Start with the trampoline MOQ guide to define the order structure and the supplier comparison framework to normalize product inputs. Review the round, kids, and rectangle trampoline ranges before building a mixed-SKU scenario.
When the models and warehouse destination are known, request a quote from Rocheyard. Include the target quantities, destination ZIP, preferred trade term, and channel. Rocheyard responds within one US business day with model pricing and available loading assumptions for your landed-cost worksheet.