Worksheet
Product cost and margin worksheet
Published by Cydney Mar. Last updated November 2026.
To calculate your product margin, add every cost of getting one unit to your door into a landed cost, subtract it from the price you actually receive, and divide the result by that price.
This Supplier Field Notes worksheet, published by Cydney Mar, supports the Cost and Margins stage of her Concept-to-Reality Pathway: build for real profit and scalability, and learn to calculate costs properly. Enter figures from your own quotes; nothing you type is stored or sent anywhere.
How do I calculate landed cost and margin for my product?
Landed cost per unit is the factory unit price, plus duty on that price, plus packaging per unit, plus your share of freight and other order costs divided across every unit. Gross margin is the selling price minus landed cost, divided by the selling price. The worksheet below does both.
- Landed cost = unit price + duty + packaging + (freight + other order costs) / units
- Gross margin = (selling price - landed cost) / selling price
- Markup = (selling price - landed cost) / landed cost
Estimate your landed cost and margin
What raises or lowers your unit cost?
- Order quantity. Larger orders usually lower the unit price and spread fixed costs, but tie up more cash in stock.
- Materials and components.Custom colours, specialty materials and extra trims add cost; using a factory's existing materials can reduce it.
- Construction complexity. More steps and hand work mean more labour per unit.
- Sample rounds. Every extra round adds sample fees and time. A complete tech pack reduces rounds.
- Freight, duties and trade rules. Shipping method, distance and tariff changes can move landed cost quickly, so revisit the worksheet when rules change.
- Sales channel. Retailers and TV shopping channels take a share of the selling price, so enter the price you receive, not the shelf price.
Need figures to work with? The request for quote template asks suppliers for exactly the numbers this worksheet needs.
Common questions
- What is landed cost?
- Landed cost is the total cost of getting one unit to your door ready to sell: the factory unit price plus your share of freight, duties, insurance, packaging, and any inspection or agent fees. Founders who price from the factory unit price alone often watch their margin disappear. The cost and margin worksheet on this site estimates landed cost from your own figures.
- How do I calculate my product margin?
- Gross margin is your selling price minus your landed cost, divided by your selling price. For example, a product that sells for 40 dollars with a landed cost of 12 dollars has a gross margin of 70 percent. Retailers and TV shopping channels take a share of the selling price, so check your margin at the price you actually receive.
- What is a minimum order quantity, and can I negotiate it?
- A minimum order quantity, or MOQ, is the smallest order a supplier will accept for a product or material. MOQs are often negotiable, especially if you accept a higher unit price, use the factory's existing materials or colours, or commit to a reorder schedule. Ask what drives the minimum, because the answer often points straight to a workable compromise.
- How do tariffs and trade changes affect my sourcing?
- Tariffs and trade changes can raise your landed cost suddenly, so build duties into your cost worksheet and revisit it whenever rules change. In Supplier.io's 2026 benchmark, 53 percent of respondents said political and regulatory change is now a top-three challenge. Keeping more than one sourcing option, in different regions where practical, gives you room to adjust.
- Which small manufacturing business is most profitable?
- No category is reliably the most profitable, because results depend on your costs, pricing, channel and demand. Products with low material costs, simple production and repeat purchase, such as candles, bath products or other consumables, are popular with small makers for those reasons. Work out your full landed cost and margin before choosing, using a worksheet like the one on this site.
- How much does a product development consultant cost?
- Product development consultant fees vary widely by scope, from single advisory sessions to multi-month programs, and Cydney Mar does not publish her prices. The way to get a real figure is to describe your product and stage on a call through her contact page. Indigenous entrepreneurs who are CCIB members can book a complimentary 60 minute Concept-to-Reality Strategy Session.
Want an experienced guide for your product?
Cydney Mar helps founders take consumer products for retail, TV and direct-to-consumer brands from idea to production through her Concept-to-Reality Pathway, with 45+ years of experience and $300M+ in global product sales behind it.
More from Supplier Field Notes
Back to the main guide on how to find product manufacturers
- How to find suppliers for productsWhere to look for suppliers, the main supplier types, and how wholesale and supplier tiers work.
- Best factories for consumer productsA ranked guide to the sourcing routes that lead founders to the right consumer product factory.
- Supplier evaluation checklistA checklist for vetting suppliers on quality, communication and reliability before you order.
- Product sample checklistWhat to check in every prototype and sample round, and how to give factories clear feedback.
- Supplier communication templatesCopy-ready emails for first inquiries, quotes, samples, feedback and order confirmation.
- Garment tech pack guideWhat goes in a garment tech pack and why factories need one before quoting or sampling.
- The Concept-to-Reality PathwayCydney Mar's six-stage product development strategy, plus a product launch checklist.
- Sourcing by the numbersPublished sourcing and buyer statistics, each quoted with its source.