Factory Price vs Landed Cost: What Nigerian Importers Need to Know

“Factory price” sounds like the lowest possible number, taken straight from the source. It is not. It is the product cost at a particular quantity, specification and Incoterm — before the rest of the journey exists.

Factory price is the beginning, not the final cost.

What factory price usually includes — and what it does not

A unit price from a supplier typically covers the product as quoted. It may or may not include packaging, labelling, domestic handling in China, or anything after the factory gate. If you do not ask, you do not know.

Costs that sit around the product

• Product cost
• Packaging and labelling
• Domestic transportation in China
• Inspection and quality checks where required
• Consolidation and handling where applicable

Costs that sit in the journey

• International shipping arranged with a logistics provider
• Insurance
• Customs clearance and duties
• Local charges on arrival

Vesta coordinates sourcing, procurement, inspection where required, and consolidation where applicable. Transportation is handled by independent logistics partners. That distinction matters when you are adding up the real number.

The number that should guide the decision

Smart importers look at total landed cost — or at least a realistic estimate of it — before they fall in love with a unit price. The cheapest supplier can become your most expensive supplier once quality, delays, rework or incomplete quotations enter the picture.

Related services: Procurement & Purchasing, Consolidation