How to Read a Chinese Factory Price List

A China factory quotation can be decoded in a few minutes once you know its skeleton. Whether it arrives as a formatted spreadsheet or a one-paragraph email, it is trying to communicate the same ten things: the item and its specification, the minimum order, quantity-based price tiers, the unit price, what packaging is included, the trade term, the lead time, the payment terms, the currency, and how long the quote stays valid. If any of those ten are missing, you are not comparing prices. You are comparing incomplete information.

The confusion usually comes from the format, not the substance. Factory salespeople in China quote domestic buyers in the same shorthand they use for international ones, so a quote can arrive full of abbreviations, a trade term without a port name, or a single unit price with no quantity tiers. A sourcing agent like CN Ally reads hundreds of these a year, but you can learn the skill yourself in one sitting. What follows is a line-by-line decoder: the columns, the abbreviations, the traps, and a worked example of comparing two quotes fairly.

The ten lines every complete quotation contains

Before decoding any shorthand, check whether the quote even has all ten pieces. A complete factory quotation states:

1. Item and description - product name, model number, or the factory's internal item code.
2. Specification - the details that define what you are buying: material, dimensions, colors, certifications, packaging form.
3. Unit of measure - pieces, sets, pairs, cartons. Mixing these up is a classic first-order error.
4. MOQ - the minimum order quantity the factory will accept at this price.
5. Quantity price tiers - the unit price at each volume breakpoint (for example 500, 1,000, 5,000 pieces).
6. Packaging included - what the price covers: inner box, export carton, pallet, or none of these.
7. Trade term - EXW, FOB, CIF and the named port or place. The term decides how much logistics is baked into the price.
8. Lead time - days from deposit or approved sample to shipment, and whether tooling time is separate.
9. Payment terms - typically 30% deposit and 70% balance before shipment for first orders, written as "30/70 T/T".
10. Validity - how long the price holds, usually 15 to 30 days in volatile categories.

A quote missing three or four of these is normal. Your job is to notice which ones are missing and ask for them before you negotiate, because each missing line is a cost that can reappear later at someone else's number.

The abbreviation glossary: what the shorthand actually means

Most of a price list's cryptic look comes from standard trade abbreviations. This table covers the ones that appear on real Chinese factory quotes.

Abbreviation · Stands for · What it means on a quote

• MOQ: Minimum Order Quantity · Smallest order the factory accepts at the quoted price
• T/T: Telegraphic Transfer · Bank wire payment; "30/70 T/T" means 30% deposit, 70% before shipment
• L/C: Letter of Credit · Bank-guaranteed payment, used on larger or riskier first orders
• D/P: Documents against Payment · Buyer pays before receiving shipping documents
• O/A or OA: Open Account · Payment after delivery, usually only for established relationships
• P/O: Purchase Order · Your formal order document referencing the quote
• P/I: Proforma Invoice · The factory's formal payment request, issued after you accept a quote
• ETD: Estimated Time of Departure · When the vessel or flight is expected to leave
• ETA: Estimated Time of Arrival · When it is expected to reach the destination
• NRE: Non-Recurring Engineering · One-time tooling and setup costs, not repeated on reorders
• OEM: Original Equipment Manufacturing · Factory builds your design under your brand
• ODM: Original Design Manufacturing · Factory sells its own design with your branding
• pc / pcs: Piece(s) · The unit being priced
• ctn / ctns: Carton(s) · Packing unit; check whether "price per carton" or "per piece" is stated
• CBM: Cubic Meter · Volume measure used for freight calculation
• 20'GP / 40'HQ: 20ft general purpose / 40ft high cube container · Container sizes a quote or packing plan may reference
• SKU: Stock Keeping Unit · Your or the factory's product variant code
• HS code: Harmonized System code · Customs classification that determines your duty rate

Watch the unit column especially. A quote priced "per ctn" next to a quote priced "per pc" is not a price difference. It is a different number entirely. Always convert to cost per sellable unit before comparing.

How to read the price list table itself

Formatted factory price lists usually arrive as a spreadsheet or PDF table with columns like these, left to right:

• Item no. / Model - the factory's code. Ask what changes between model numbers if two look similar.
• Product description - often one terse line. If it says "wireless earbuds" and nothing else, the spec lives in a separate attachment or was never defined.
• Specification - material, size, color options, voltage, certifications. This column is where cheap quotes hide their savings: thinner material, lower-grade components, no certification.
• Unit - pc, set, pair, carton. Read it every time.
• MOQ - may differ by color or by customization. A price list showing "MOQ 500" can mean 500 per color, not 500 total.
• Unit price columns - the tiered prices, for example FOB Shenzhen $4.20 / $3.85 / $3.60 at 500 / 1,000 / 5,000 pieces.
• Packaging - "white box", "color box", "export carton". If this column says "standard", ask what standard means in writing.
• Lead time - usually production days only, not counting shipping or sample approval.
• Remarks - where factories bury the important stuff: "price valid 30 days", "excluding freight", "sample fee deductible from order". Read it twice; this is where exclusions live, and exclusions are where the real price hides.

The trade term line: why "FOB" alone is not enough

The trade term tells you where the factory's cost responsibility ends, which decides whether two unit prices are comparable at all. The three terms you will see most on China factory quotes are EXW, FOB, and CIF. Under the Incoterms 2020 rules published by the International Chamber of Commerce, these terms also fix the point where the risk of loss transfers, and each one must name a port or place to be complete. A properly written term looks like "FOB Shenzhen Incoterms 2020", not just "FOB". The named port matters: FOB Shenzhen and FOB Shanghai from the same factory imply different inland trucking costs.

Term · Factory pays up to · You handle from

• EXW (Ex Works): Factory gate · Everything, including export clearance
• FOB (Free On Board): Goods loaded on vessel at named port · Ocean freight onward
• CIF (Cost, Insurance, Freight): Freight and minimum insurance to destination port · Import clearance and delivery · The named port matters: FOB Shenzhen and FOB Shanghai from the same factory imply different inland trucking costs. One trap worth knowing: under FOB and CIF, the risk of loss transfers to you when the goods go on board the vessel at the port of shipment, even on CIF where the factory arranged and paid for the freight. The factory pays for the shipping; you carry the transit risk.

For a fuller treatment of every term and the responsibilities behind them, see our guide to Incoterms for China imports.

The quantity-tier trap: MOQ is not the price, and the first tier is not the deal

Factories almost always quote a price ladder, and the ladder is where the negotiation actually happens. A typical structure:

Quantity · Unit price (FOB Shenzhen)

• 500 pcs: $4.20
• 1,000 pcs: $3.85
• 5,000 pcs: $3.60

Three traps hide in this innocent-looking table. First, buyers compare the wrong tier: Factory A quotes $3.85 at 1,000 pieces and Factory B quotes $3.60, but B's $3.60 applies only at 5,000 pieces while their 1,000-piece price is $4.05. A is cheaper at your actual volume. Second, MOQ and the first tier are often different numbers: a factory can have an MOQ of 300 but quote tiers starting at 500, meaning small orders pay the 500-piece price or an unmentioned surcharge. Third, tiers apply per variant, not per order. Split 1,000 pieces across four colors and you may be at the 250-piece price, not the 1,000-piece price. Ask whether tiers apply per SKU or per order total.

The habit that prevents all three: before comparing, write down your actual order quantity, per variant, and ask every factory for their unit price at exactly that quantity on exactly the same trade term.

Seven traps hidden in factory price lists

These are the patterns that turn a good-looking quote into an expensive order. Each is fixable with one question.

1. A single unit price with no tiers. Every factory's cost structure changes with volume. A quote with one price and no breakpoints is either unfinished or hiding how fast the price drops at scale. Ask for two or three tiers.

2. "Approx." or "TBD" on tooling. Mold and tooling costs should be quotable before production. An approximate tooling number that grows after deposit is one of the most common sourcing disputes. If the factory genuinely cannot fix the number yet, they should say why and when they will.

3. Packaging described as "standard". Standard for whom? A white inner box and export carton can add meaningful cost that a bare-bones quote omits, then invoices later. Ask for packaging itemized: inner box, master carton, pallet, and whether the price includes them.

4. Bundled "other fees". A line reading "documentation, inspection, handling: $180" merges costs that should be separate. Inspection in particular varies enormously: the factory's own visual check is not the same service as an independent inspection.

5. No validity period. Material prices move. A quote with no expiry is one the factory can revise the moment material prices shift. Expect 15 to 30 days of validity in most categories, and get it in writing.

6. Payment terms missing or unusual. The normal first-order structure is a deposit with the balance before shipment. Terms demanding most of the money before production starts, or full prepayment on a first order with an unverified factory, are a reason to slow down and verify the supplier first.

7. Currency ambiguity. Most export quotes are in USD, but some factories quote in RMB, and a USD price converted "at the rate on payment day" is a moving target. Confirm the currency, and if it is RMB, confirm whose exchange rate applies and when it is fixed.

A worked comparison: normalizing two quotes

Two factories quote the same Bluetooth speaker at 2,000 pieces:

Line · Factory A · Factory B

• Unit price: $18.50/pc · $17.20/pc
• Trade term: FOB Shenzhen · EXW Dongguan
• Packaging: Color box + export carton included · "Standard packing"
• Tooling: None (existing mold) · None (existing mold)
• Payment: 30/70 T/T · 30/70 T/T
• Lead time: 25 days · 25 days
• Validity: 30 days · Not stated

Factory B looks $1.30 cheaper per unit. It is not. Factory B's price is EXW, so add export clearance, trucking to the port, and port handling to reach Factory A's FOB baseline. Those additions typically erase the $1.30 gap and can reverse it. B's "standard packing" is also undefined while A itemizes color box and export carton, and B states no validity period, so the $17.20 may not survive the week. The reply to send B: convert to FOB Shenzhen, itemize packaging, add a validity date. Only then do you have two numbers describing the same thing.

This normalization discipline is the core skill behind any serious supplier comparison, extended in our guide to comparing supplier quotations to specs, QC scope, and total landed cost. For another walkthrough of the same idea on a real electronics quote, see this line-by-line factory quote decoder.

What to request when the quote is incomplete

Most first quotes are incomplete. Treat incompleteness as a to-do list, and reply with a short, specific request rather than a long negotiation:

• Ask for the missing lines by name: trade term with named port, packaging itemization, validity period, payment terms.
• Ask for the unit price at your exact quantity and variant split, on one named trade term. If the factory will not split the quote by cost line, our product costing breakdown shows the four-line split to request.
• Ask what is excluded, in writing. The exclusions list is often more informative than the price.
• Request a formal proforma invoice before paying anything. A quotation is an offer; a proforma invoice is the document you pay against, and it should restate every agreed line so nothing drifts between quote and payment.

If a factory will not or cannot produce this level of detail, that is information too. Factories with real cost control can break down their numbers; suppliers who answer detail questions with "standard charge" or silence are telling you their sales team does not understand their own cost structure, which previews how disputes will go.

FAQ

What should a complete factory quotation from China include?

Item description, specification, unit of measure, MOQ, quantity-based price tiers, packaging details, trade term with a named port, lead time, payment terms, currency, and a validity period. Missing any of these is normal on a first quote; request the missing lines before comparing or negotiating.

What do EXW, FOB, and CIF mean on a factory quote?

They are Incoterms 2020 rules defining where the factory's cost responsibility ends. EXW means you handle everything from the factory gate, including export clearance. FOB means the factory delivers the goods on board the vessel at the named port, and it is the standard baseline for comparing China quotes. CIF means the factory also pays freight and minimum insurance to your destination port, though transit risk still transfers to you at the port of shipment.

What are the most common abbreviations in Chinese supplier quotes?

MOQ (minimum order quantity), T/T (bank wire transfer), L/C (letter of credit), P/I (proforma invoice), ETD/ETA (estimated departure/arrival), NRE (one-time tooling costs), and OEM/ODM (your design vs the factory's design). The unit abbreviation matters most: confirm whether the price is per piece, per set, or per carton.

Why do two factories quote different prices for the same product?

Usually because they are not quoting the same scope. Differences hide in the specification (material grade, components), the trade term (EXW vs FOB), packaging (included vs excluded), the quantity tier, and omitted lines like testing or inland freight. Normalize every quote to the same spec, quantity, and trade term before comparing.

How long is a Chinese factory quote valid?

Typically 15 to 30 days in most product categories, shorter for commodities where material prices move quickly. If no validity period is stated, assume the price can change and ask for one in writing.

What is the difference between a quotation and a proforma invoice?

A quotation is the factory's offer: indicative pricing and terms for your evaluation. A proforma invoice is issued after you accept the quote and restates the agreed specification, quantity, price, trade term, payment schedule, and banking details. Always pay against a proforma invoice, not the original quotation.

The eight-line rule: never order off a quote you cannot decode

Before any deposit leaves your account, confirm eight lines in writing: the exact specification, the unit of measure, your quantity per variant, the unit price on one named trade term, what packaging is included, the lead time and what starts its clock, the payment terms, and the validity period. Everything else in the quote is commentary.

If this process feels like a lot of back-and-forth for every supplier, that is the work a sourcing partner absorbs. CN Ally's product sourcing service normalizes factory quotes as a matter of routine: same spec, same quantity, same trade term, exclusions in writing, before any recommendation. When you are ready to have quotes decoded and compared by people who read them daily, write to hi@cnally.com with your product specification and target quantity.