Work out what a product really costs once freight, GST, and handling are added, then apply your margin to set the right selling price. The all-in-one pricing tool for distributors.
The price on the invoice isn't what a product actually costs you. Landed cost adds freight, handling, and other charges to the base price β and that fuller number is what your margin should be built on.
GST on the purchase is usually left out of landed cost, because you claim it back as input tax credit; folding it in understates your margin. This tool separates the recoverable GST from the real cost, then applies your margin to suggest a net rate and MRP.
Base βΉ800 + freight βΉ40 = βΉ840 landed (ex-GST). At a 25% margin, net rate = 840 Γ· 0.75 = βΉ1,120; add 18% GST for an MRP of βΉ1,321. The βΉ151 input GST is claimed back, not added to cost.
Not if you're registered and can claim input tax credit β the GST is recoverable, so including it inflates your cost and hides real margin. Add it only when ITC isn't available to you.
Inbound freight, loading and unloading, insurance in transit, and any handling or clearing charges. Anything you spend to get the goods into your godown belongs in landed cost.
FlowKartAI does everything this tool does β and more β automatically for every WhatsApp order you receive.
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