> ## Documentation Index
> Fetch the complete documentation index at: https://help.macleather.co.uk/llms.txt
> Use this file to discover all available pages before exploring further.

# Sample Landed Costs

> Calculate the true cost of producing a sample

# Sample Landed Costs

The Landed Cost module calculates the total cost to produce a sample, including materials, labor, and any additional expenses.

<Note>
  **Where to find it**

  Open any sample and look for the **Landed Cost** card on the sample detail page.
</Note>

## Cost Components

<AccordionGroup>
  <Accordion title="Materials Cost">
    Automatically calculated from your three material entries:

    * **Leather** cost
    * **Accessories** cost
    * **Lining** cost

    Enter the cost for each material in its detail section. The total updates automatically.
  </Accordion>

  <Accordion title="Labor Costs">
    Based on the rates you set on the sample:

    * **Stitcher Rate** × Quantity = Stitching cost
    * **Fuser Rate** × Quantity = Fusing cost

    For example: If stitcher rate is PKR 150 and quantity is 2, stitching cost = PKR 300.
  </Accordion>

  <Accordion title="Additional Costs">
    Optional extras you can add manually:

    * Packaging
    * Special finishing
    * Testing fees
    * Any other costs

    Click **Add Cost** to include additional line items.
  </Accordion>
</AccordionGroup>

## Currency Display

Costs are shown in both currencies:

| Currency | Use                                 |
| -------- | ----------------------------------- |
| **PKR**  | Local production costs, labor rates |
| **GBP**  | Customer pricing, export invoicing  |

<Info>
  Exchange rates update automatically. The current rate is shown at the top of the Landed Cost card.
</Info>

## Per-Unit Cost

The system calculates the cost per unit:

```
Per-Unit Cost = Total Cost ÷ Quantity
```

This helps when quoting to customers or comparing sample costs across different products.

## FOB vs CIF

For samples, you'll typically work with:

| Term    | Meaning                                                   |
| ------- | --------------------------------------------------------- |
| **FOB** | Free On Board – cost to get the sample ready for shipping |
| **CIF** | Cost, Insurance & Freight – includes shipping to customer |

Most sample quotes are FOB. Full CIF calculations with freight, insurance, and duties are handled in the [Export Landed Costs](/exports/landed-costs) module for production orders.

## Labor Rates and Production

When you [convert a sample to production](/samples/sample-to-production), the stitcher and fuser rates carry over to the production order.

These rates then apply to job cards, determining worker pay for each unit produced.

<Tip>
  Set accurate rates at the sample stage. It's easier to adjust now than after production has started.
</Tip>

## Example Breakdown

| Component           | PKR       | GBP        |
| ------------------- | --------- | ---------- |
| Leather             | 2,500     | £7.14      |
| Accessories         | 800       | £2.29      |
| Lining              | 400       | £1.14      |
| **Materials Total** | **3,700** | **£10.57** |
| Stitching (150 × 2) | 300       | £0.86      |
| Fusing (50 × 2)     | 100       | £0.29      |
| **Labor Total**     | **400**   | **£1.14**  |
| Packaging           | 200       | £0.57      |
| **Grand Total**     | **4,300** | **£12.29** |
| **Per Unit (÷2)**   | **2,150** | **£6.14**  |

## Related

<Card title="Production Landed Costs" icon="industry" href="/production/landed-costs">
  Full costing for production orders including labor and material costs
</Card>