How to compare two factory quotations

Direct answer

Two quotations are comparable only when the unit, the order quantity, the price basis and what the price includes are all stated, and when both are normalised to the same pack count. Until then you are comparing two documents, not two prices. This page is the five-step normalisation, with the field that most often hides the real difference.

Key facts

The unit comes first. Our own sample mixes per piece, per pack and per bag inside single product types.
A per-bag price placed beside a per-piece price creates an apparent range that does not exist.
The basis (FOB a named port, or EXW factory) explains most of the gap between two quotations.
The MOQ and the unit price move together; the lowest unit price usually sits on the largest order.
Tooling, packing and the price validity are separate lines, and a blended total hides which one moved.

The five-step normalisation

Do these in order. Each step removes a difference that is not about price.

1. The unit

Per piece, per pack, per bag. Our own sample mixes all three inside single product types, so this is not a hypothetical problem — it is the first thing a buyer meets.

In the VIB type, one sampled listing is priced per bag while the rest are priced per piece. Placed side by side, the type appears to have a ten-fold range that does not exist.

Get the count per pack in writing and divide. Only then put two numbers beside each other.

2. The quantity

A unit price belongs to an MOQ band, not to a product. If one quotation is for 500 pieces and the other for 2,000, you are holding two different offers.

Ask each factory for the price at both quantities. The slope between them tells you what the setup actually costs — and it is the honest basis for the MOQ conversation, because MOQ is a setup-cost calculation rather than a negotiating position.

3. The basis

FOB a named port, or EXW factory. This single field explains most of the gap between two quotations that look like they are for the same thing. A quotation that does not state its basis cannot be compared with anything, including a later quotation from the same factory.

The FOB vs EXW page sets out what each one includes and where the seller's responsibility stops.

4. What is inside the price

Ask explicitly about four lines:

Line	The question to ask
Tooling	Is the mould charge inside the unit price, or a separate one-off?
Sampling	Are sample costs credited against the first production order, or not?
Packing	Retail-ready or bulk? A retail card is a real cost and it is the line most often quietly changed.
Compliance testing	Is any test included, and for which market? EU and US tests are separate for the same product.

A blended total hides which of those four moved. A quotation that lists them separately can be compared line by line — and that is what makes it a quotation rather than a price.

5. Validity

A quotation with no expiry is a quotation nobody can act on. The window matters particularly for seasonal categories, where a delivery that lands late is not a late delivery — it is a year of stock.

Now compare what is left

Once the five steps are done, whatever difference remains is the real one, and it is usually in three places:

The tolerance band. A wider band is cheaper and it is where a repeat order drifts.
The packing. The cheapest pack is only cheaper if the product survives the carton.
What travels with the shipment. Test reports, certificates and inspection paperwork are cost lines that are invisible in a unit price.

Where to go next

A first order from China, step by step
What to do when a sample fails
Reference price bands — the band each type sits in, with the unit stated
The comparable quote fields
Send a specification

Frequently asked questions

Why are two quotations for the same product so different?

Usually because they are not for the same product. In our own catalogue one product type is priced per piece on some rows and per bag on others, so a comparison made on the printed number alone can show a ten-fold gap that does not exist. Normalise the unit before you read the price.

What does FOB include that EXW does not?

EXW stops at the factory gate; FOB includes getting the goods to a named port and loaded. That difference is why an FOB quotation and an EXW quotation for the same product are two different offers, and why a quotation that does not state its basis cannot be compared with anything — including a later quotation from the same factory.

Should I always choose the cheaper quotation?

Only after normalising. Once both are on the same unit, the same quantity and the same basis, the remaining differences are usually in three places: the tolerance band, the packing, and what travels with the shipment. Those three are what the price difference is actually buying, and one of them decides whether a repeat order matches the first one.

How do I compare a quotation for 500 pieces with one for 2,000?

You cannot, and you should not try. Ask each factory for its price at both quantities. The slope between the two numbers is the real information, because it tells you what the setup cost is and how much of it is being spread over the run.

What should I ask for in writing before deciding?

The unit and the pack count, the price basis with a named port if it is FOB, the MOQ band the price belongs to, the validity window, and which of tooling, sampling and packing are inside the price. Five lines. A quotation that answers all five can be compared; one that answers three cannot.

Is a lower price a warning sign?

It is a question, not a warning. A materially lower price is normal when the order is larger, the tolerance is wider, the packing is bulk rather than retail, or the basis is EXW rather than FOB. Ask which of the four applies. If none of them does, ask what is not in the price.

Sources 3 cited

Every figure on this page traces to one of these. The same list is declared in the page structured data (schema.org citation) and in the Markdown twin.