Key takeaways
- Sorting supplier quotes by “Unit Price” is how first-time importers lose their deposits. The cheapest factory price often hides the most expensive logistics and payment risks.
- An RFQ comparison spreadsheet needs seven columns: Unit Price, Incoterms, MOQ, Lead Time, Payment Terms, Sample Costs, and Supplier Type (Factory vs. Trader).
- EXW (Ex Works) and FOB (Free on Board) quotes cannot be compared directly. A $0.20 cheaper EXW quote will cost you more once you pay for domestic trucking and export clearance.
- Before comparing prices, verify the 18-digit USCC. If you are comparing a real manufacturer against a trading company posing as a factory, your spreadsheet is already lying to you.
You sent an RFQ to ten factories on Alibaba. Five replied. You open your spreadsheet, sort the “Unit Price” column from lowest to highest, and highlight the winner.
Stop. That is exactly how first-time importers lose their money.
A unit price is just one line item in a much larger supply chain. If Factory A quotes you $4.50 EXW and Factory B quotes you $4.80 FOB Ningbo, Factory B is actually cheaper when you factor in the truck to the port and the export broker. If Factory A demands a 100% upfront wire transfer and Factory B accepts 30/70 terms tied to a pre-shipment inspection, Factory B is infinitely safer.
This is the exact RFQ comparison framework I use to line up quotes from Chinese manufacturers. It turns supplier selection from a guessing game into a documented decision.
The 7 columns your RFQ spreadsheet actually needs
Most buyers track three things: Price, MOQ, and Lead Time. That is not enough. Here are the seven columns you need to see the real picture.
| Column | What to ask for | Why it matters (The hidden trap) |
|---|---|---|
| 1. Unit Price & Currency | Price per unit, and whether it is locked in USD or RMB. | If quoted in RMB, you carry the exchange rate risk. If the RMB appreciates 3% before you pay the balance, your margin vanishes. |
| 2. Incoterms | EXW, FOB, CIF, or DDP? | EXW means the price is just for the goods sitting on their floor. You pay for domestic logistics and export licenses. FOB means they handle it to the port. Never compare an EXW quote to an FOB quote directly. |
| 3. MOQ & Tiered Pricing | Minimum order quantity, and the price break at 2x or 5x volume. | Some factories quote a low price for 5,000 units but you only need 500. Always get the price for your actual target volume. |
| 4. Lead Time | Days for raw materials + days for production. | “30 days” often means 30 days after the 15-day material sourcing phase. Force them to break it down. |
| 5. Payment Terms | Deposit % and Balance %. | Standard is 30% deposit, 70% balance after a successful pre-shipment inspection. Never pay 100% upfront for custom OEM. |
| 6. Sample Lead Time & Cost | Days to produce a prototype, and if the cost is refundable against bulk. | A factory that takes 20 days to make one sample will likely miss your bulk production deadline. |
| 7. Supplier Type | Verified Factory vs. Trading Company. | Found via USCC registry check. Trading companies add a 10-15% margin and obscure the real factory’s location. |
Vetting before you compare: filtering the traders
You cannot put a verified manufacturer and a trading company in the same spreadsheet and compare their prices fairly. The trading company is quoting you a margin on top of the real factory’s price, and they are obscuring where the goods are actually made.
Before a quote even enters my comparison sheet, the supplier passes the registry filter. I pull their 18-digit USCC (Unified Social Credit Code) and check the business scope on the national registry. If the scope says “Sales/Trade” but no “Manufacturing/Production,” they are a middleman. I wrote the full step-by-step process for this in my supplier due diligence guide.
If I keep a trading company in the running (sometimes they are useful for consolidating small mixed containers), they get flagged in Column 7. You need to know who is actually making your product.
A real-world comparison: treadmills in Zhejiang
When I ran my fitness equipment company out of Jinhua, placing OEM treadmill orders with Zhejiang factories, I lived inside this exact spreadsheet. Here is how a real comparison plays out when you look past the unit price.
Factory X quoted $145 per unit, EXW Yongkang. They wanted a 50% deposit upfront, and quoted a 45-day lead time.
Factory Y quoted $152 per unit, FOB Ningbo. They accepted 30/70 terms tied to my QC inspection, and quoted 30 days.
A beginner looks at the $7 difference and picks Factory X. But let’s do the math:
- Factory X’s EXW price meant I had to hire a truck to Ningbo port and pay a customs broker to buy an export license. That added $6 per unit in hidden logistics.
- Factory X’s 50% upfront deposit meant I had zero leverage if the quality was wrong. Factory Y’s 70% balance, held until my inspector signed off on the cartons, was worth far more than $7.
- Factory Y’s 30-day lead time got the goods on the water two weeks faster, saving me half a month of cash-flow dead time.
Factory Y won the contract. The “cheapest” quote was actually the most expensive and the most dangerous.
How to send the RFQ in the first place
Your spreadsheet is only as good as the data the factories give you. If you send a vague message saying “I want to buy Bluetooth speakers, please quote,” you will get vague, inflated quotes.
A professional RFQ includes:
- Tech pack or spec sheet: Materials, dimensions, weight, colors (Pantone codes), and packaging requirements.
- Target quantity: Be honest. If you want 500, don’t say 10,000 to get a better price. They will find out at the proforma invoice stage, and you will lose credibility.
- Required Incoterms: Tell them you want FOB [Nearest Port] so all quotes land in the same column.
- Quality standard: Mention your AQL (Acceptable Quality Limit) inspection requirement upfront. Factories that cut corners will self-select out of the bidding.
Quick answers
What is a good RFQ template for Chinese suppliers?
A good RFQ template forces suppliers to quote on the same terms. It must include your exact specs, target quantity, required Incoterms (usually FOB), and a statement that final payment is tied to a third-party pre-shipment inspection.
Should I always choose the lowest FOB price?
No. The lowest FOB price often comes from a factory that cuts corners on raw materials or subcontracts your order to a cheaper, unverified workshop. Compare payment terms, lead times, and USCC registry verification alongside the price.
How do I negotiate after comparing quotes?
Use the spreadsheet as leverage. Tell Factory A: “Your price is 5% higher than Factory B, but I prefer your communication. If you can match their FOB price or improve your payment terms to 20/80, I will sign the PI with you today.”
If you have five quotes sitting in your inbox and you aren’t sure which one is actually the safest bet, send me the spreadsheet. I will audit the hidden costs and verify the factories before you wire a deposit.
Founder & Sourcing Director at Clari Sourcing, based in Guangzhou. 10+ years of factory sourcing, negotiation and quality control experience, helping importers and Amazon sellers buy from China with confidence.