Landed cost
What a unit costs once it has physically arrived where you sell it, including freight and handling.
Ex-works cost is what a unit costs standing on the loading dock of the factory. Landed cost is what it costs sitting in the warehouse it ships from, or on the retailer’s shelf — everything in between included.
What sits in between is usually outbound freight, third-party logistics receiving and storage, and for imported goods duty and customs clearance. For a low-value high-volume product like a canned drink, that gap is not small: it is routinely a quarter of the total cost.
Margins quoted against ex-works cost look considerably healthier than the business actually is. If you compare a wholesale price to an ex-works cost, you have not accounted for how the product got there.
NextBatch keeps this straight for you. Cost per unit, tolling tiers, yield and traceability all derive from the same plan you and your co-manufacturer share — so none of it is a number somebody typed twice.
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