Glossary
What is landed cost?
Landed cost = ingredient cost + cooking utility cost + (for imports) freight + duty + handling. Per-serving landed cost = total ÷ servings.
Formula
For home cooking:
- Landed cost = (ingredient cost) + (utility cost: gas + water + oil) + (any waste/disposal fee)
For B2B import (we cover this on trademargintools.com):
- Landed cost = FOB unit cost × MOQ + chargeable freight + (FOB + freight) × duty rate
Example: Carbonara at Whole Foods
- 200g spaghetti × $0.55/100g = $1.10
- 100g pancetta × $2.40/100g = $2.40
- 3 eggs × $0.55 = $1.65
- 60g pecorino × $3.50/100g = $2.10
- pepper, salt = $0.05
- Gas (boil 18 min): $0.05
- Water (3L): $0.005
- Total landed cost: $7.36 / 2 servings = $3.68 per serving
Why it matters
Most cooks compare ingredient cost only and forget utilities. Frying an oven-bake adds $0.20-0.40 per serving in gas alone. Compounded weekly, that's a $20-40/month invisible bill.
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