The lowest factory price may not produce the lowest landed cost
Compare product price, setup, packaging, freight, duties, defects and working-capital effects before selecting a supplier.
Supplier A can quote a lower unit price while requiring a larger order, separate packaging, longer production and a distant pickup. Supplier B can look more expensive but reduce tooling, damage or logistics cost. A useful comparison follows the order to the buyer's receiving point instead of stopping at the factory gate.
Use the same commercial basis
Align quantities, currency, trade term, named place, specification and packaging before comparing. Convert one-time charges separately so their effect on a trial order and future orders is visible. Keep estimates marked as estimates.
Add logistics and import assumptions
Include domestic pickup, origin handling, main freight, insurance, destination handling, duty, tax treatment and final delivery as appropriate. Ask the buyer's broker and forwarder to confirm destination assumptions. Do not hide uncertain charges inside an invented all-in number.
Price quality and delay exposure
Consider inspection, expected rework, replacement parts, damage risk, communication effort and the cost of late delivery. These are scenario estimates, not guaranteed costs. A slightly higher price can be rational if it reduces a material and evidenced risk.
Include cash and inventory
Compare deposit size, payment timing, MOQ, production lead time and stockholding. A large low-priced order may consume more cash and create obsolete inventory. Present the total commitment and key assumptions so the buyer can choose consciously.
Decision checklist
- Aligned quantity and specification
- One-time and recurring charges
- Origin and destination logistics
- Duty and tax advice
- Quality and delay scenarios
- Cash, MOQ and inventory exposure
Where CHAOSHUO can help
CHAOSHUO can gather comparable supplier and China-side logistics information and organise a landed-cost worksheet. Customs, tax and financial decisions require the buyer's professional advisers.
General trade guidance, not transaction-specific legal, tax, customs, insurance, banking or technical advice. Requirements, access, third-party services, fees and responsibilities are confirmed separately for each project.
Bring us your China-side trade question.
Share the product, order stage and problem you need to solve. We will discuss a defined coordination task, timing and fees before paid work begins.