A Quotation Is a Contract Draft — Read It Like One
Chinese factory quotations vary enormously in detail and transparency. Some are one-line emails: '11" latex balloon, 1-color print, 10,000 pcs, $0.06/pc FOB.' Others are multi-page documents. Understanding what's included, what's missing, and what the terms actually mean prevents expensive misunderstandings.
Every Quotation Must Include These 8 Items
- Product specification: Exact description of what is being quoted — material, size, print method, color count, finish, packaging. If the spec is vague ('custom balloons'), the quote is unreliable.
- Quantity: The quantity the unit price is based on. A quote for 10,000 units at $0.06 is NOT valid for 2,000 units. Ask for pricing at multiple quantity tiers.
- Unit price and currency: Almost always USD for export. Confirm whether price is per piece, per pack, per carton, or per set.
- Incoterm: FOB (Ningbo or Shanghai is standard), CIF, or DDP. This defines what's included in the price and what you pay separately.
- Payment terms: Standard is 30% deposit, 70% before shipment (T/T). Any deviation — 100% upfront, 50/50, or L/C — should be explicitly confirmed.
- Sample terms: Sample fee amount, lead time, and whether the fee is refundable against the bulk order. If not stated, assume it's not refundable.
- Lead time: Production lead time in days, starting from artwork/sample approval (not from order date). If not stated, assume 30–40 days.
- Validity period: How long the quoted price is valid. Standard is 30 days. A quote without a validity period can change at any time.
What's Often Missing (Ask About These)
- Tooling/setup cost: Printing plates, screens, cutting dies. Often quoted separately from unit price. Confirm whether tooling cost is one-time or recurring.
- Packaging cost: Is the quoted packaging the standard polybag, or the retail packaging you specified? Packaging upgrades add cost — confirm what's included.
- Compliance testing cost: EN71, ASTM, REACH testing fees are usually separate from unit price. Confirm who pays and how much.
- Inspection cost: Pre-shipment inspection. Some factories include basic inspection; third-party inspection (SGS/BV) is extra.
- Bank charges: International T/T transfers incur bank fees. Clarify who pays sending and receiving bank charges. Standard: remitter pays sending fees, beneficiary pays receiving fees.
Red Flags in Factory Quotations
- Price significantly below competitors: If three factories quote $0.06–0.08 and one quotes $0.03, something is different — lower material grade, thinner paper, no quality control, or a bait price that changes after sampling.
- 'We can make anything' with no spec questions: A factory that doesn't ask clarifying questions about your design, material, or compliance requirements is either not reading your RFQ or planning to figure it out during production (risky).
- Vague delivery date: 'Around 30 days' without confirming the start date (artwork approval or order date) is not a commitment.
- No sample policy stated: A factory that doesn't mention sampling in the quotation may resist providing samples after you pay the deposit.
How to Compare Multiple Quotations
Create a comparison spreadsheet with these columns: supplier, unit price, total FOB, tooling cost, sample fee (refundable?), lead time, payment terms, and notes on spec compliance. The lowest unit price is not always the best total value — factor in tooling, sample cost, and lead time reliability.