Landed Cost
Part of Supplier requests and quotations
Asking suppliers to separate optional charges
Separate the required base offer from optional supplier charges, with each fee's trigger, basis and timing shown.
Ask the supplier to price the requested product first, then price selectable work on separate lines. For each charge, request the amount, currency, trigger, quantity basis and effect on timing. This lets you compare base offers without overlooking a service one supplier includes and another charges separately.
Define the base offer
State the product version, variants, quantity, standard packaging and delivery point used for the base price. Ask the supplier to confirm what is included. Count an item in the comparable base total if it is necessary to deliver that base product, even if the supplier calls it an ‘extra’.
For example, artwork preparation may be optional if you can supply production-ready files. Label application is required if the quoted goods must arrive with the agreed labels attached. Classification depends on the request and offer, not a universal list of fees.
Request a charge schedule
A short schedule should answer more than ‘How much?’:
Field / Question for the supplier
- Description
- What work or item does the charge buy?
- Trigger
- When does it become payable?
- Basis
- Per unit, variant, order, production run or event?
- Amount
- Price, currency and any minimum charge?
- Timing
- Payment date and effect on goods-ready date?
- Recurrence
- Does it apply again on a repeat order?
- Choice
- Is buyer approval needed before the work begins?
Ask the supplier to mark each row included, required but separately charged, optional or not offered. Do not enter zero for an unquoted item.
Separate charges that often get bundled
Samples, new tooling, artwork changes, special retail packs, additional testing, buyer-requested inspection, expedited production and extra freight services can have different triggers. Ask who arranges each service and whether a third party will invoice you directly. An ‘all-in’ price still needs a stated delivery point and exclusions.
For imports, an Incoterms 2020 rule can allocate specified costs and responsibilities when incorporated into an agreement with a named place. It does not set every purchase term. Check the quoted services against the rule and obtain prices for work left with your business before comparing offers.
Do not assume a test or inspection can be declined without consequence because its fee is labelled optional. Where Australian consumer-product requirements apply, the goods must meet them before supply. Decide what evidence is necessary for the actual product independently of the supplier’s fee label.
Compare and authorise the choice
Keep two totals: base offer for the agreed requirement and chosen additions. In a fictional example, a base pack priced at A$10 per unit plus a selectable A$1 gift box costs A$10 per unit without the box and A$11 per unit with it, assuming no other change. These are arithmetic inputs, not market prices.
Ask for a revised written quotation if an addition changes the product, order quantity, delivery basis or lead time. Record accepted options and their approver in the purchase order so an unselected proposal does not become an invoice or production instruction.
