How to Compare Prices from Chinese Suppliers Fairly

Two suppliers reply with prices. One says $2.10, the other $2.45. It looks obvious which is cheaper — and it usually is not, because the quotations describe different things.

Why Quotations Differ

• Different order quantities and MOQ tiers.
• Different specifications (materials, thickness, finish).
• Different inclusions (packaging, certification, tooling).
• Different Incoterms (who pays freight and when risk passes).
• Different payment terms and lead times.

How to Normalise a Quote

1. Fix one quantity for all suppliers.
2. Fix one specification, and note any deviation.
3. Convert each quote to landed cost per unit at your door.
4. Add tooling or setup costs spread over your expected volume.
5. Add estimated duties and taxes from your customs authority.
6. Record lead time next to cost.

Comparison Table Template

Common Mistakes

• Comparing a low tier price with a high tier price.
• Ignoring the shipping cost of a heavier or bulkier option.
• Forgetting tooling that only applies to one quotation.
• Choosing purely on price and overlooking lead time or quality risk.

Frequently Asked Questions

Is the cheapest supplier always the worst?

Not always, but a price far below the others usually means a different specification, material or quantity basis. Find out why before you benefit from it.

What is landed cost?

Landed cost is the total cost to get a unit to you, including purchase, freight, fees, duties and taxes.

Should freight be in the quotation?

Ideally the quote is broken down so you can see product, freight and fees separately — that is how you compare fairly.

We prepare supplier comparisons in this format — see supplier sourcing or request a quote.