How-to guide
How to calculate the landed cost of bags
Two quotes with the same unit price can cost very differently once the bags reach you.
Quick answer
Landed cost = unit price + branding + packaging + freight + insurance + applicable taxes and duties + handling, divided by the number of usable pieces. Compare suppliers on landed cost, not unit price.
Updated by the Vago team
Key takeaways
- Start with the unit price
- Add one-time costs
- Add packing and freight
- Add taxes
- Divide by usable pieces
Step by step
Start with the unit price
Make sure each quote is for the same specification.
Add one-time costs
Samples, screens, dies and artwork setup, divided across the order.
Add packing and freight
Freight depends on carton volume (CBM) and distance.
Add taxes
Include GST and, for imports or exports, duties and clearance charges.
Divide by usable pieces
Allow for any defects or shortages.
Tips
- Ask suppliers for carton size and pieces per carton
Mistakes to avoid
- Comparing ex-factory and delivered prices as if they were the same
Terms used in this guide
- Landed cost
- The total cost of goods once they reach you, including freight.
- CBM (cubic metre)
- The volume measure used to calculate freight for cartons.
- EXW, FOB and delivered prices
- Terms that say who pays freight and where ownership passes.
- HSN code
- The product classification code used for GST invoices in India.
- Proforma invoice
- A preliminary invoice that confirms price and terms before production.
Terms explained
Trade terms used on this page, in plain language.
- Pre-production sample (PPS)
- The final sample approved before bulk production starts.
- Vector artwork
- A logo file made of shapes (AI, EPS, PDF, SVG) that scales without losing quality.
- Landed cost
- The total cost of goods once they reach you, including freight.
- HSN code
- The product classification code used for GST invoices in India.
- Carton marking
- Labels on shipping cartons showing style, colour, size and quantity.
- Proforma invoice
- A preliminary invoice that confirms price and terms before production.
Questions buyers ask
Something else? Ask on WhatsApp and the production team will reply.
Does bag volume affect freight?
Yes. Bags are light but bulky, so freight is often charged on carton volume.
Request a quote for custom bags
Share quantity, size, material and branding. We reply with specifications, MOQ and pricing, and arrange a sample first.