South Florida Business Daily

What is the difference between cost and distribution cost?

If cost is what it costs to make a product.How do you figuere your distribution cost. Does that just mean cost + shipping=distribution cost?

Public Comments

1. distribution cost is usually a seperate line on a business plan. Its what the cost will be to get your product to the customer no matter who they are. If make something and plan on having one warehouse or ten if you first ship by rail then bu truck. It is all costs involved in getting the product delivered to where it has to go. This woould be listed on the business plan seperate. So you plan might have a line for marketing cost, productions costs, administrative costs, distribution costs, Personal costs, Insurance costs, etc. Then you add them all up for total cost.