Product cost benchmark: what you pay now against China
For brands, retailers and wholesalers already buying a range of products in the UK. List up to ten products with the units you buy in a year, the unit cost you pay now and a China landed cost for the same product. The benchmark shows the saving or extra cost per unit and per year for each product, the totals across the range and, if you enter one-off costs such as moulds and samples, how many months the saving takes to pay them back.
How the benchmark works
- Saving per unit = current UK unit cost − China landed cost per unit
- Saving per year = annual units × saving per unit
- Saving % = saving per unit ÷ current UK unit cost
- Current annual spend = the sum of annual units × current unit cost over every complete row
- China landed annual spend = the sum of annual units × China landed cost over every complete row
- Total annual saving = current annual spend − China landed annual spend; overall % = total saving ÷ current annual spend
- Payback in months = one-off costs ÷ (total annual saving ÷ 12), shown only when the total saving is above zero
- A fair comparison needs the same specification, the same quantity, the same inspection and the same delivery scope on both sides. If your current price includes delivery to your warehouse, the China figure must too. If it includes testing, packaging or labelling, so must the China figure.
- Enter both costs excluding VAT. A VAT-registered business reclaims VAT on both, so including it on one side only would distort the result.
- The China landed cost per unit is the factory price plus freight, insurance, customs duty and clearance, spread over the order quantity. The annual units should be bought at that order quantity, or the landed cost will differ.
- A row is counted only when it has annual units, a current unit cost and a China landed cost. Rows with a gap are left out of the totals.
- A negative saving means the China landed cost is higher than what you pay now for that product. It is shown as it is, so you can see which products to leave where they are.
- One-off costs are those paid once to move the products: moulds and tooling, samples and first-article checks. They are not spread into the unit costs.
Comparing one product from the factory price up? Use theChina vs UK price comparison.
The tool adds up the figures you enter. It holds no prices, savings, freight rates or duty rates of its own, and it does not cover VAT, currency movement or the cost of holding more stock.
Questions about this tool
How do I compare what I pay now with buying from China?
Put the current unit cost and the China landed cost for the same product side by side, both excluding VAT and on the same delivery terms, then multiply the difference by the units you buy in a year. Doing this for each product shows where moving to China makes a difference and where it does not.
What makes the comparison fair?
The same specification, the same quantity, the same inspection and the same delivery scope on both sides. A China price for a lighter material, a larger order or delivery only to a UK port is not comparable with a UK price for the finished product delivered to your warehouse.
What goes into the China landed cost per unit?
The factory price, freight and insurance to the UK, customs duty and clearance, and delivery to the same place your current supplier delivers to, all divided by the order quantity. The import duty calculator and the guide to understanding your landed price on this site show how to add them up.
What does the payback figure mean?
It is the number of months the total annual saving takes to cover the one-off costs of moving, such as moulds, samples and first-article checks. It is shown only when the total saving is above zero.
Why does a product show that China costs more?
Because the China landed cost you entered is above what you pay now. Some products are cheaper to keep buying in the UK, and the benchmark shows them as they are so the totals are not overstated.
Want China landed costs for the products you buy now?
Tell us the product, quantity and destination. Our own staff in China verify factories, follow production and inspect before shipment. We reply the same working day to confirm receipt and arrange next steps.
Discuss your sourcing project- WhatsAppBuying for a business? WhatsApp works too: send your company name, product, quantity and timing, and we will reply with the next steps.
- WeChat: pineapplebuin2000
- 07410367251
- enquiries@camchinabridge.co.uk
- Cambridge & London