How to Compare Supplier Quotes from China
The Danger of the Lowest Price
When comparing quotes from Chinese suppliers, the lowest price is rarely the best choice. A quote that is significantly lower than the average usually indicates compromised material quality, missing certifications, or hidden costs that will appear later in the process.
Standardizing Your Request for Quotation (RFQ)
To get comparable quotes, you must provide identical specifications to all suppliers. Include material requirements, dimensions, packaging details, and Incoterms (e.g., FOB vs. EXW). If a quote comes back with missing details, ask for clarification before comparing it.
Uncovering Hidden Costs
Always ask what is included in the unit price. Does it cover custom packaging? Are export clearance fees included? What is the cost for product modifications? Breaking down the quote into specific line items will give you a much clearer picture of the actual cost.