The factory's unit price is only part of what a custom product costs. Budget for one-off costs (development, samples, tooling, testing) and per-unit costs (packaging, inspection, freight, duties, import fees). Work out your landed cost per unit before you set a retail price, and make sure it leaves room for marketing, platform fees and returns.
Two kinds of cost
Founders often compare factory quotes and stop there. The quote is usually just the price of the product leaving the factory gate. Everything that gets it designed, approved, protected, shipped and cleared sits on top. Those costs fall into two groups.
| Cost | Type | What drives it |
|---|---|---|
| Product development | One-off | How new the product is, and how many rounds it takes to get right |
| Samples and courier | One-off | Number of sample rounds, and sending samples abroad |
| Moulds and tooling | One-off | Only needed for a new shape; stock shapes avoid it |
| Testing and certification | One-off, sometimes per batch | Your product type and the rules of the market you sell in |
| Factory price | Per unit | Materials, finish, labour and order size |
| Packaging | Per unit | Custom boxes, inserts, printing and finishes |
| Inspection | Per order | Usually a day rate, spread across the order |
| Freight | Per order | Volume and weight, sea or air, and destination |
| Duties, taxes and import fees | Per order | Product classification, country of origin and destination |
How to work out your landed cost
Landed cost is what each unit really costs you once it is in your warehouse, ready to sell. Add every per-order cost, divide by the number of units, and add the factory and packaging price per unit. Then spread the one-off costs across your first run, so you know what the first batch truly costs.
Real figures vary widely by product, materials, quantity and destination. The point of the exercise is to know your number before you commit, not after.
Where founders get surprised
- Packaging. A beautiful custom box can cost as much as the product inside it, and often carries the highest minimum order.
- Extra sample rounds. A vague brief means more rounds, more courier fees and more weeks. A clear specification is the cheapest saving there is.
- Tooling. A new shape needs a mould, paid once but up front. Starting from a stock shape with a custom finish often avoids it entirely.
- Testing. Some products need lab testing or certification before they can be sold in a market. It is far cheaper to know this at the brief stage than at customs.
- Duties. Rates depend on how a product is classified, and some categories carry extra duties in some markets. Check yours early: it can change which materials make sense.
Five ways to keep costs down
- Write a detailed brief. Fewer sample rounds means lower cost and a faster launch.
- Use stock shapes and parts where customers won't notice, and spend on what they will.
- Design packaging that ships flat and shares one box across your range.
- Ship by sea when you can plan ahead, and consolidate parts from different suppliers into one shipment.
- Plan your second order early. Unit prices usually fall as volumes rise, and one-off costs are already paid.
How we approach it at the Studio
Every discovery brief includes a landed-cost estimate for your product and your market, with the one-off and per-unit costs set out separately. You see the full picture, including testing and duties, before you commit to development.
Questions founders ask
What is landed cost?
The total cost of one unit once it has arrived in your warehouse, ready to sell: factory price, packaging, inspection, freight, duties, taxes and import fees, divided across the order.
Do I pay for moulds?
Only if your product needs a new shape. The brand usually pays for a custom mould once, up front. Starting from an existing shape with a custom finish often avoids the cost entirely.
Should I ship by sea or air?
Sea is far cheaper for most products but takes weeks longer. Air suits samples, urgent restocks and small, light products. Most brands ship production by sea and samples by air.
How much margin should I leave?
Enough to cover marketing, platform or marketplace fees, returns, discounts and your own overheads, and still make a profit. Work back from your retail price to check the numbers before committing to production.
Planning a premium wellness product?
Global Wellness Brand Studio develops and produces premium wellness products in China, with a team on the ground and our own brands as proof.
Apply for the next cohort