HomeInsightsWhy Quotations Differ 40% on the Same Part Article /Insights Why Quotations Differ 40% on the Same Part A forty percent gap is rarely a pricing decision. It is usually four small differences stacked — and three of them are visible if you ask for the breakdown. 9 min read Reading time November 2, 2026 Updated Insights Filed under On this page5 sections Four lines: material, cycle time, tooling, freight How to normalise two quotes before you compare Why packaging and freight differ so much What we do when two quotes disagree Common questions Quick read · Insights Why quotations differ by 40% on the same drawing comes down to four lines: what material grade was assumed, how many seconds per cycle the factory budgeted, whether tooling was amortised into the unit price, and which freight basis was used. Ask for these four and most of the gap resolves itself. Pexels · free to usePexels License Quick answer Material grade substitution accounts for 8–20% of the gap on metal and plastic parts. Cycle time assumptions of 45 versus 70 seconds per part change labour cost by a third. Tooling amortised over 5,000 units versus 50,000 units moves unit price by 10–25%. EXW versus FOB can add 4–9% once inland haulage and export clearance are counted. Four lines: material, cycle time, tooling, freight A quotation is not a price. It is a set of assumptions compressed into one number, and two factories rarely make the same assumptions. The four that matter most are material grade, cycle time, tooling amortisation and freight basis. Three of them are arithmetic, not negotiation. Line Typical gap What to ask for Material grade 8–20% Grade name plus mill certificate, not just “steel” Cycle time 20–35% Quoted seconds per part and cavitation for moulded parts Tooling amortisation 10–25% Tool cost, and the unit volume it was spread over Freight basis 4–9% EXW, FOB or DDP, and who pays inland haulage Pexels · free to use How to normalise two quotes before you compare Buyers often ask why quotations differ by so much when the drawing has not changed. The answer is almost always in the assumptions, not in the margin. Put both quotes into one table with the same rows, then delete every line that is not comparable. What survives is the real difference. Ask each factory to re-quote at the same volume. A quote for 5,000 units and a quote for 50,000 units are not competing numbers. If a factory will not break down material and labour separately, treat the quote as an estimate, not an offer. Same specification sheet sent to both, same revision number, same tolerance callouts. Same order quantity, stated in writing before quoting. Same Incoterm, or convert both to FOB yourself before comparing. Same payment terms — a 30% deposit and a 100% prepayment are different prices. Pexels · free to use Why packaging and freight differ so much Carton cost per unit is usually small. What moves the number is how the factory loads a container and whether it quotes export packing at all. A factory quoting EXW leaves the inland leg to you. On a 20-foot container from Dongguan to Shenzhen port, that leg plus export clearance commonly runs 4–9% of goods value. Pexels · free to use What we do when two quotes disagree We take both quotes to the same specification, re-quote at one volume, and report the four lines side by side with the mill certificate and the audit notes attached. We do not tell you which factory is cheaper. We tell you what each price assumes, and which assumptions you can verify before money moves. Common questions Is the cheaper quote usually the riskier one? Not automatically. A 40% gap often sits in tooling amortisation, which is arithmetic. But when the gap comes from material grade with no certificate offered, treat it as a finding. Should I ask both factories to re-quote at the same volume? Yes, in writing. Volume changes material purchasing and tooling spread, and both change the unit price by more than most buyers expect. The factory refuses to break down costs. Is that a red flag? It limits what you can verify. You can still compare landed cost at one volume, but you lose the ability to tell a pricing difference from a specification difference. We do not set prices, do not negotiate on your behalf without instruction, and do not take commission from factories. Our work is to make two quotes comparable and to verify the assumptions behind them. Related reading Insights The quotation that is 18% lower usually left out three things A lower number is rarely efficiency. It is a smaller s… Read the full case → Market Watch How to read the index clause in a quotation Material, freight and exchange rate move. A quotation … Read the full case → Policy & Compliance Five reasons export documents come back, in the order they fail Most rejections are not policy problems. They are five… Read the full case → Same kind of request? 写下Category、Quantity与目标City,Within 24 hours on working days给出范围、排期与报价口径。 Submit a request