Stocked in the US vs Importing Direct: The Real Cost Comparison

Stocked in the US vs Importing Direct: The Real Cost Comparison

Direct importing wins the price comparison on almost every quotation. It loses less often than buyers expect once the shipment arrives in three months, duty has been paid on the wrong mix, and the two models that were supposed to sell have not.

The five lines that decide it

A fair comparison puts these on the same page, per unit:

LineDirect importDomestic stockist
Unit priceLowestHigher
Freight and dutyPaid by the buyer, on the whole containerEmbedded in the price
Capital tied upPaid 30–90 days before salePaid on delivery
Forecast riskBorne by the buyerShared or avoided
Reorder flexibilityOne container, one dateBy the pallet, as needed

The forecast is where the money goes

A container forces a commitment to a mix. If a model underperforms by twenty percent, the buyer is holding inventory that will be discounted, and discounting a lamp by twenty points to clear it costs more than the entire price difference on the other models.

Capital has a price

Money paid in March to sell in June has a carrying cost, and it is not zero. Add the interest, the storage, and the share of the warehouse that a container occupies, and a good part of the unit-price advantage disappears before any lamp has been sold.

When direct importing wins clearly

Three conditions, and they are specific:

  • A model with proven demand over more than one season, where reorder certainty is high
  • A private-label programme where the packaging and the finish are yours and cannot be bought domestically
  • A price point where the margin simply does not exist unless the landed cost is minimised

A hybrid that most buyers land on

Import the core models and keep a domestic source for the tail. The core carries the margin, the tail absorbs the demand you did not forecast, and the assortment is never out of stock during the weeks when a container is on the water.

Related reading

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