How to Compare Factory Quotes from China: Rebuild Them on One Basis First

Three quotes for "the same product" are almost never for the same product. One supplier priced 201 stainless steel, another 304. One included a colour box, another a polybag. One quoted ex-works, another FOB Ningbo. Compare the unit prices as they arrive and you are comparing three different orders.

The fix is mechanical: rebuild every quote on one basis, then compare. Below are the six steps, a worked example with three suppliers, and the questions that expose a price that is too good.

Why the cheapest quote is often the most expensive order

Quotes differ in five places, and only the first number is visible at a glance:

1. Specification: material grade, wall thickness, weight, finish, accessories.
2. Packaging: polybag, brown box or printed colour box; 3-ply or 5-ply export carton; units per carton.
3. Price basis: EXW, FOB or CIF; which port; USD or RMB; with or without VAT invoicing.
4. One-off costs: moulds, printing plates, sample fees, lab tests.
5. Terms: MOQ per colour or per SKU, lead time, payment terms, how long the price is valid.

A supplier who is 10% cheaper on the unit price can easily be 10% more expensive once these are priced in.

Step 1: Send every supplier the same written brief

You cannot compare answers to different questions. Write one brief and send it unchanged to every supplier: product, material and grade, dimensions and weight, colours, packaging, carton requirement, quantity per SKU, destination market, delivery date and any tests the product needs.

Ask for the answer in a fixed format: unit price, price basis and port, MOQ per SKU, sample cost and time, production lead time, payment terms, validity date, units per carton, carton size and gross weight. Our one-page spec sheet is built for exactly this.

Step 2: Put every price on the same basis

Pick one basis, usually FOB at the same port in USD, and convert every quote to it.

• EXW to FOB: add inland trucking to the port, export declaration and terminal handling. Ask the supplier or your forwarder for a figure, not "a small amount".
• CIF or CFR to FOB: strip out the ocean freight and insurance, so you can buy freight yourself and compare like with like.
• RMB to USD: convert at one rate on one date, and note each quote's validity. A price valid for 7 days is not the same offer as one valid for 30.
• Tax: domestic RMB prices, especially on 1688 and in the Yiwu market, are often quoted without a VAT invoice. If your order needs proper export paperwork, ask whether the price changes.

Step 3: Price the specification gaps, never guess them

Where a quote does not match the brief, ask the supplier to price the difference in writing: "Please quote 304 instead of 201", "Please add the printed colour box per our artwork". Don't fill the gap with your own estimate. How carefully a supplier answers is also a test of how carefully they read your brief.

Step 4: Spread one-off costs across the order

Moulds, printing plates, sample fees and lab tests are real costs of the first order. Divide them by the order quantity and add them to the unit price.

Then ask two questions. Who owns the mould? Is the mould fee refunded after a set reorder volume? A cheaper unit price with a mould you don't own can cost more the day you want to move production.

Step 5: Add pack-out and freight per unit

Freight is charged by volume or weight, so how a supplier packs the product changes your landed cost. For each quote, record units per carton, carton dimensions and gross weight, then work out the cubic metres for the whole order and the freight per unit. Two suppliers with similar FOB prices can land at different costs because one fits 12 sets in a carton and the other fits 8.

Step 6: Compare the terms that cost money later

• MOQ per colour, not per order. "MOQ 3,000" across three colours is very different from 3,000 per colour.
• Lead time from sample approval, not from deposit, and what happens if it slips.
• Payment terms. A 30% deposit with the 70% balance paid before shipment, against an inspection report, is the common structure. 100% upfront to a new supplier is a risk you are paying for.
• Defects. Who pays for rework or replacements found at inspection.

Worked example: three quotes for 5,000 mixing-bowl sets

Illustrative numbers that show the method. The brief: 3-piece mixing-bowl set, 304 stainless steel, printed colour box, 5-ply export carton, 5,000 sets, FOB Ningbo.

As received	Supplier A	Supplier B	Supplier C
Unit price quoted (USD)	2.60	2.95	2.75
Price basis	EXW factory	FOB Ningbo	FOB Ningbo
Steel	201 (confirmed only when asked)	304	304
Packaging	Polybag	Colour box, 5-ply carton	Brown box, 3-ply carton
One-off costs	None	None	Printing plate, $120
Pack-out	Not given	12 sets per carton, 0.062 m³	8 sets per carton, 0.055 m³

Each gap was then priced by the supplier, in writing:

Rebuilt per set (USD)	Supplier A	Supplier B	Supplier C
Quoted price	2.60	2.95	2.75
Upgrade 201 to 304	+0.38	—	—
Printed colour box	+0.22	included	+0.18
5-ply export carton	included	included	+0.03
Printing plate ($120 ÷ 5,000)	—	—	+0.02
EXW to FOB ($650 trucking and clearance ÷ 5,000)	+0.13	—	—
Comparable FOB price	3.33	2.95	2.98

Now add freight at an illustrative $90 per cubic metre to the buyer's warehouse (Supplier A must first supply pack-out data):

Freight check	Supplier B	Supplier C
Cartons	417	625
Volume (m³)	25.9	34.4
Freight per set (USD)	0.47	0.62
FOB plus freight per set (USD)	3.42	3.60
Order total (USD)	17,077	18,014

What this shows: the "cheapest" quote, A at $2.60, becomes the most expensive at $3.33 once it meets the brief, 13% above B. C looked 7% cheaper than B on paper and lands about 5% dearer, $937 more on this order, because of packaging and pack-out.

The sheet doesn't choose the supplier for you. It tells you what you are choosing between. Verification, sample quality and how each supplier answered your questions decide the rest.

When one quote is far below the others

A gap you can't explain usually comes from one of these: a cheaper material or thinner gauge; a trading company quoting a stock item instead of your spec; packaging or cartons left out; a price that assumes a larger quantity; or a supplier "buying" the first order and planning to recover margin on reorders. Ask in writing:

1. "Please confirm the material grade and wall thickness you quoted."
2. "Does this price include the colour box and export carton in our brief?"
3. "What is the MOQ per colour at this price?"
4. "Is this price EXW or FOB, and which port?"
5. "How long is this price valid?"

Vague or slow answers before payment rarely improve after it.

Your comparison sheet

Columns to copy into your own sheet: supplier; factory or trading company; quoted price; basis and port; currency and validity; material and grade confirmed; packaging; carton (ply, units, size, gross weight); one-off costs and mould ownership; MOQ per SKU and colour; sample cost and time; lead time from approval; payment terms; comparable FOB price; freight per unit; open questions.

FAQ

How many quotes should I collect? Three to five comparable quotes are usually enough. Beyond that, you spend weeks chasing answers instead of checking your best two or three candidates.

Should I ask for EXW or FOB? Ask for FOB at a named port. It is the basis most Chinese exporters quote, and it leaves you free to choose your own forwarder. See Incoterms for importers.

Can I tell Supplier B that Supplier C is cheaper? You can say you hold a lower comparable offer. Don't forward a competitor's quote, and only use a gap once you have confirmed both quotes cover the same spec.

Is the lowest comparable price the right choice? Only if the supplier also passes verification and the sample matches. Price is the last filter, not the first.

Want this done for your next order? Our factory quote comparison service rebuilds every quote on one basis and names each missing cost before you order.