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Worked example

What packing is worth on an office chair

One product, one price, three ways of putting it in a box — and a landed cost that halves.

Take one office chair at the middle of the current wholesale range and change nothing about it except how it goes into the carton. Ocean freight is billed on the space a carton occupies, so this single decision does more to your landed cost than any negotiation you are likely to win.

The three configurations

PackingVolume per chairFreight per chairLanded before duty
Assembled0.36 CBM$46.80$63.99
Partly knocked down0.18 CBM$23.40$40.03
Fully knocked down, flat packed0.11 CBM$14.30$30.71

Shipped assembled, the freight costs more than three times what the chair itself costs to buy. The goods are around $14 a chair at the median sourcing price; the ocean freight on an assembled unit is around $47. Flat packing takes the landed cost from about $64 to about $31.

Why this is the whole game in furniture

A hard round of price negotiation in this category might move the factory price by a few percent. The packing decision moves the landed cost by half. If you have an afternoon, spend it on the carton drawing rather than the price list.

The trade-off is real: assembly moves to your end of the chain, and every assembly step is a warranty claim waiting to happen if the fixings are wrong. That is a quality-control problem, and it is solvable. Paying to ship air is not.

What is assumed here

  • Price: the median of 54 current wholesale listings for office and task chairs.
  • Volume: three illustrative configurations, not one supplier’s carton specification — which is the point, since the configuration is your decision rather than a property of the product.
  • Quantity: 1,000 chairs, ocean freight, delivered in the United States.
  • Duty: excluded. Classification depends on the chair’s construction and materials, so a single published rate would be wrong for some readers.

The full cost model, every coefficient and the duty sensitivity table are on the office chairs cost page.

Frequently asked questions

Where do these figures come from?
Our own cost model, applied to the median of 54 current wholesale listings and a current ocean freight rate. Every coefficient is stated on the linked cost page, so you can substitute your own supplier price or carton and recompute the whole thing. These are costings rather than client engagements — which is why every input is published.
Where do the volumes come from?
They are illustrative configurations chosen to span the realistic range from assembled to flat packed, not one supplier's carton specification. Substitute your own supplier's packing list and the arithmetic works the same way.
Does knocking down always make sense?
Almost always for ocean freight in a bulky category, unless your sales channel cannot handle assembly. The saving is large enough to change whether the product works commercially at all.

The data behind it

Where these numbers come from

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