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Question
We are developing a product and currently trying to determine the cost of production i.e. BOM. Our expected first batch run will be about 10,000. As I have started to contact suppliers the cost at 10,000 units are still pretty high. My question is to get a better price quote could I ask for a quote for 100,000 units on a annual or 2 year bases, and would that get me a better quote from the factory? I wanted to know is there a better way to request quotes from China based factories.

Answer
Hi

For sure quotation of 100,000 units should be better than the one of 10,000 units. The difficulty is, many buyers are used to set a high volume to test the best price that makes the factories more and more carefully. Moreover, quite many factories of China stay on a very low margin but not good at management. It means they dare not to lower the price too much, and you need to try to convince them to do so.

I don't know how many kinds of materials you are looking for but normally you should check each of them from at least 20 factories and choose some of them to make the deeper investigation. If lucky, you can get more than one supplier who can meet your target but if not, you have to do the above again.

It seems complicated but if you can open some information of this project, such as material names, descriptions, technical data, target price, I would like to offer you a free evaluation to see the possibility.

Best Regards

Mark

Exporting & Importing Goods

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Volunteer


Mark Mok

Expertise

I can help those who need to buy from China on manufacturer sourcing, factory audit, price negotiation, quality control, money safe, China travel and logistics, ect.

Experience

I work as a product sourcing manager for more than 5 years and have experience in area of international trade of around 16 years.

Organizations
PT5 Sourcing Management

Education/Credentials
Graduated from Tianjin University of Finance and Economy in 1992.

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