Short answer: A unit price from China and a price from a local supplier are different kinds of number. The local price usually includes much of what happens after the factory: transport, import, storage and handling. The China unit price usually does not. To compare fairly, build both up to the same point, which is the cost at your door, with six lines: shipping, customs and duties, inspection, packaging, insurance, and bank and currency charges. Then add the things a price cannot show, such as quality and flexibility.
Our guide to the total landed cost from China gives the full breakdown of the cost lines and how the trade terms differ. This article uses a narrower question: how do you compare a quote from China with a quote from a supplier near you, so that you make the right decision rather than the one that merely looks cheaper?
Why the comparison goes wrong
A buyer sees two numbers and picks the lower. The trouble is that the numbers describe different things.
- A local supplier's price is usually delivered and ready to sell. It may already include transport, import duty, handling, storage and often some after-sales cover.
- A China unit price is usually the price of the product at a stated point, such as the factory or the port of departure. What happens after that point is yours to arrange and to pay for.
Comparing them directly flatters the China price. The remedy is not to distrust the quote, only to complete it.
Start with the trade term
Every quote sits on a trade term that says where the seller's job ends. Common terms for purchases like this are EXW (ex works, the goods are handed over at the factory), FOB (the seller loads the goods on board at the port of departure) and CIF (the seller also pays freight and insurance to the destination port).
The same product on EXW, FOB and CIF terms will have different headline prices, because each leaves a different amount for you to add. Before comparing anything else, write down which term each offer uses and which lines it leaves out.
The six lines to add
1. Shipping
Mode of transport, route, and what is covered. Is it port to port or door to door? Who pays at each stage, including local charges at the destination? Bulky, light goods are priced by space rather than weight, which is why packaging design can matter. See our guide on volumetric weight.
2. Customs and duties
The customs classification of your product in your country decides the duty and tax. A licensed customs broker in your country can confirm the classification and the charges. Ask also who files the customs entry and whether there are broker fees.
3. Inspection
Will the goods be checked, by whom, and against which written standard? If you want a check before shipment, it is a cost line. A local supplier's quality control is usually part of their price. Compare like with like.
4. Packaging
Export cartons, labels, printing and any special packing are sometimes priced separately. Custom packaging can also come with its own minimum quantity. Ask what is included in the unit price.
5. Insurance
Is the cargo insured, from which point to which point, and who is the beneficiary? What is excluded? An uninsured loss is not a small cost line, even if it is rare.
6. Bank and currency charges
Bank fees on both sides and the exchange rate your bank applies. If the invoice is in a different currency from your costs, the rate at the time of payment matters too. Our guide to how a SWIFT transfer works explains the fee options.
Build a simple comparison sheet
Make one row per line and one column per offer.
| Line | China offer | Local offer |
|---|---|---|
| Unit price and quantity | ||
| Trade term | ||
| Shipping | ||
| Customs and duties | ||
| Inspection | ||
| Packaging | ||
| Insurance | ||
| Bank and currency | ||
| Total at your door |
Fill every cell. If a cell is empty, that is a question for the supplier, not a zero. A line with no answer is usually a cost you have not met yet.
What the price cannot show
The sheet gives you the cost. Some of what matters is not a cost.
- Quality and consistency. Does either offer have a check you trust?
- After-sales support. A local supplier may be easier to reach when something goes wrong. Ask what happens with a defective batch in either case.
- Minimum quantity and cash tied up. A larger commitment ties up money for longer. See how a pilot order can reduce that exposure.
- Time. Lead time and the time goods spend in transit affect your cash and your stock.
- Payment terms. Compare when you must pay and what happens if things go wrong. The article on payment terms with China suppliers covers the options.
- Flexibility. Can you reorder small amounts, change a spec, return a faulty batch?
A local supplier can be the right choice even when the China landed cost is lower, and a China supplier can be the right choice even when the figures are close. The aim is a decision made on complete information.
Questions that make a quote comparable
- Which trade term does this price use, and what does it include?
- What is left for me to pay after this point?
- Is packaging included, and does custom packaging have a separate minimum?
- Is inspection included, and to which standard?
- Is insurance included, from where to where?
- Which currency and payment method, and who bears the bank charges?
- Which customs classification did you assume for this product?
- What happens if the goods arrive damaged or different from the sample?
How we can help
Send us your product, the quantity you have in mind and your destination, and we will send you a quote. We can also go through which cost lines it covers and which remain open for you, so the comparison with a local supplier is fair.
Bottom line
A comparison is only as honest as the numbers behind it. Bring both offers to the same point, which is your door, fill in all six lines, and weigh the things a price cannot show. Then whichever supplier you choose, you have chosen it on facts.
Want a quote to compare with a local offer? Request a quote with your product, quantity and destination.