Lara GuevaraSupply Chain expert (Product and Service)

You’re Overestimating Profit

29 Apr 2026 · 1 min

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1:01

Lara Guevara shows DTC founders how tariffs exposed a bigger problem: they're ignoring landed costs like duties and freight. A brand thought it had 58% margins until true costs were included, dropping it to 39%. Making growth decisions on phantom margins is how you fail.

Chapters

Your margin is not what you think it is, and tariffs just prove it. Most DTC brands calculate margin the same way: revenue minus product cost, and that's it. No duties, no freight, no inspection fees, no forwarding charges. So when tariff went up this year, 20%, then 34%, then 145% on China goods, founders panicked. But here's the real problem. They never knew their true margin to begin with. The tariff didn't destroy the margin, it was just made visible what was always missing from the math. A brand I audited thought they had 58% gross margin. We built the number with real landed cost, it was 39%. They had been running paid ads, launching new SKUs, and planning a retail expansion on a margin that didn't exist. This week, I'm breaking down the hidden cost inside your COGS That most founders never see. Tomorrow, the one number you need before you make any decision this year.