Apparel Search › How To › Compare Factory Quotes
Apparel Search How To
Two quotes for the same garment can look very different and still cost nearly the same, or the other way around. Here is how to compare them fairly.
Once you have a shortlist of factories, quotes start coming in, and they rarely look alike. One includes trims and packing, another does not. One is priced to the factory door, another to the port. The lowest number on the page is often not the lowest cost. This guide shows how to make quotes comparable and how to see what you will really pay. If you are still looking for factories, start with how to find a clothing manufacturer.
Send every factory the same spec, quantities, colors and delivery date. Ask for an itemized quote: price per unit for each style and color, what is included (trims, labels, packing), sample and set-up costs, minimum order, lead time, payment terms, currency and how long the quote is valid. A tidy request gets tidy answers that are easy to line up.
Price terms say where the factory's responsibility ends. EXW (ex works) means the price covers goods at the factory, and you arrange everything after that. FOB (free on board) means the factory delivers goods onto the ship at the origin port. CIF includes freight and insurance to the destination port, and DDP includes delivery with duties paid. A FOB price and an EXW price are not directly comparable, so ask each factory to confirm its terms in writing.
A low unit price may come with a higher minimum order than you need, which means buying extra units. Ask whether prices drop at higher quantities, and whether minimums apply per style, per color or per order.
See where a bigger order pays off, including unsold units, with the Price Break Calculator.
Freight, insurance, import duty, customs brokerage, inspection and delivery to your warehouse often sit outside the factory price, and they differ by factory location. Duty rates depend on the product and where it is made, so confirm them with your customs broker.
Add those costs with the Landed Cost Calculator, then put up to four quotes side by side with the Supplier Quote Comparison. If you are working backward from a retail price, use the Target FOB Price Calculator.
A factory that wants a large deposit up front ties up more of your cash than one that asks for less. Work out when each payment is due and how long your money is tied up before customers pay you.
Map the payments with the Import Cash Flow Planner.
Price is only one part of the decision. Compare lead times, how well each factory answered your questions, the quality of its samples and what references say. A slightly higher price from a factory that delivers on time and gets the product right is often the better deal. Our Supplier Evaluation Checklist covers the questions to ask.
Ask about anything unclear, and ask whether combining styles or ordering a little more changes the price. Be respectful, since you are starting a relationship. When you decide, confirm the final prices, terms, quantities and dates in writing before production starts.
A good quote lists the price per unit for each style and color, what it includes, the price terms, minimum order, lead time, sample costs, payment terms, currency and how long the quote is valid.
Factories differ in cost structure, materials, what they include and the price terms they quote. Two quotes can look far apart and cost much the same once freight, duty and minimums are added, so compare the total landed cost.
Not automatically. Compare total cost, quality, lead time and reliability. A cheap quote that leads to late or faulty goods can cost more in the end.
Not necessarily. Prices can change if specifications, quantities or material costs change, or after the validity period. Confirm the final price in writing before production.
Get enough to compare fairly, which usually means several quotes from factories that suit your product and volume.