The Hidden Costs That Wreck Your Landed Cost — (And How VP China Stops Them)
You don’t lose margin in one big gulp—you bleed it away in “minor” misses: sloppy Incoterms, oversized cartons, avoidable rework, last-minute freight panic.
The quote looked perfect; the landed cost didn’t.
If you want unit economics that withstand the test of reality, you need a system. That’s where VP China comes in.
At VP China, we run a protection-first, numbers-tight system that keeps your landed cost in tune with your planned cost — from PO to delivery.
We define-
- Who owns risk at which point
- Who books insurance,
- Who handles export clearance
This is where surprises get baked in (or out). We align on the right rule for the deal before a single PO is raised.
Next, we engineer packaging for cost. Carton dimensions and inner packs drive CBM and freight class. Shave a centimetre, save a fortune. We lock specified cartons early and validate with test packs—no “we’ll figure it out” at the warehouse door.
Quality drift is another silent tax. Hope is not a QA plan. We build inspections into the calendar: in-process checks to catch issues while they’re inexpensive to fix, followed by pre-shipment inspections to ensure gate payments. We set AQL upfront so “acceptable” has a specific number, not a subjective feeling.
Compliance and documentation: HS codes, labeling, and lab tests (where required) are scheduled, not scrambled. Wrong code, wrong duty; wrong label, rejected shipment. We ensure that the paperwork can withstand scrutiny—and that your factory adhered to the specifications.
Payments and tooling create leverage, so we stage them. Sample signed? Pilot run passed? AQL cleared? Only then do funds move. Tooling, too—we document ownership, storage, and release conditions inside the contract (Chinese-language, Chinese jurisdiction) so your molds don’t go on walkabout.
Finally, freight. Rates spike when you shop at the last second. We plan capacity weeks out, consolidate where it makes sense, and keep a weather eye on cutoff dates—air when you must, sea when you can.
If you’re tired of “great quotes” turning into bad math, flip the script.
VP China operates a protection-first, numbers-tight process from Incoterms to inspection to booking, ensuring your landed cost aligns with your planned cost, not the one you incur.