Talk · Sourcing and orders

How do I compare two factory quotations fairly?

Convert both quotations to the same basis: same spec, same trade term, same quantities and same payment milestones. The cheapest headline price is often the one that leaves something out.

Published · 4 min read · Sino Finetex Editorial Team

How do I compare two factory quotations fairly?

Illustrative situation

Two factories quote the same hoodie. One total is 12 percent lower, but the quotations are formatted differently and neither lists everything the other does. The buyer needs to decide which is cheaper in practice.

Main answer

Put both quotations on the same basis before you compare totals: identical specification, identical trade term and named place, identical quantities by size and colour, and identical payment milestones. The headline price is usually lower where something has been left out, and finding what is missing is the real comparison.

Start with the specification

Write one master spec and map each quotation against it. Compare fabric composition, weight in GSM, finish, rib and trim specification, decoration method, label and packing. If a quotation says only "heavyweight fleece", ask for the exact composition and weight, because that is where most price gaps hide. Mark any line where the supplier assumed something and ask it to confirm.

Align the commercial terms

The trade term decides who pays for what. The International Trade Administration notes that Incoterms define the obligations of seller and buyer for delivery, so FOB, EXW and delivered prices cannot be compared directly. Convert them by adding the freight, insurance and handling you would have to pay in each case, using real forwarder quotes if possible.

Count the one-off costs

Sample fees, development charges, tooling, label setup and packaging may or may not be included. Ask whether any are credited against the bulk order. Add testing or inspection costs if you will pay them, and bank charges for the payment method. A quotation with a higher unit price and no extras can cost less in total than a low unit price with several add-ons.

A comparison sheet that works

Build a small table with one column per supplier and one row for each item: fabric composition and weight, finish, trims, decoration, labels, packing, trade term and place, sample cost, lead time, validity and payment milestones. Fill it from the quotations and mark every empty cell with a question. Send those questions back in one message so each supplier answers the same points, then update the table with their replies before you look at totals.

Related reading

See the boxy short cropped fleece hoodie page for the products behind this topic, and read proforma invoice next. Both are general guides, not a quotation.

Compare risk, not only price

Look at the payment milestones, validity date, delay terms and what happens on defects. A supplier that links the balance to an approved pre-shipment check has taken on some risk; one that asks for everything in advance has not. Include sample quality and communication in your judgement, since you will live with both for months.

Fact, recommendation, uncertainty

Established fact
Incoterms define the delivery obligations of buyer and seller, so prices quoted on different trade terms are not directly comparable.
Recommendation
Build one comparison sheet with spec, trade term, quantities, one-off costs and milestones, and ask each supplier to confirm its assumptions.
Uncertainty
A fair comparison still cannot measure how reliably a supplier delivers, which only a sample and a trial order can show.

Sources and further reading

Sources checked on 24 October 2026. Standards bodies sell the full texts; we cite what their public pages state. General information, not legal or technical certification advice.

More perspectives from the team

Three further views on the same question, each by function. They add conditions and limits to the main answer; they are editorial notes, not customer reviews.

Sino Finetex Editorial Team Sourcing

Ask each supplier to quote the same quantity and trade term, and request a second price for a quantity break if you may order more later. Limit: asking suppliers to match each other’s price can lead them to cut something you cannot see. Ask for the replies in writing so that the final table can be kept with the order file and used later if a term is disputed.

Sino Finetex Editorial Team Product selection

Check that each quotation covers the same product, including fabric weight and finish. A lower price may reflect a lighter fabric or a simpler rib. Limit: a match on paper still needs a physical sample to confirm. Ask for a swatch of each supplier’s proposed fabric, since two fabrics with the same description can feel and wear differently.

Sino Finetex Editorial Team Quality & care

Compare how each supplier proposes to verify quality: inspection, tests and the remedy for defects. Limit: a supplier that offers no inspection plan is leaving the cost of problems with you. Check whether each supplier would let you inspect before the balance is paid, and at whose cost.

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