How to compare two factory quotations
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.
- 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 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
- Performance claims and the evidence behind them — what to ask for when a quotation states a number
- Reference price bands — the band each type sits in, with the unit stated
- The comparable quote fields
- Send a specification