When making inquiries, many clients may have such experience: after sending the same product photo to different suppliers, they get different quatations, their quatations are quitely different from low to high. Are these suppliers unprofessional? That's not always the case. We can't figure out that online customer service staff from some suppliers are not professional price checkers or experienced hands with rich quotation experience, and most of the quotations from them are very inaccurate. However, there are also quite a few quotations that are obtained by professional price checkers or people with many years of experience on the basis of relatively accurate cost accounting. Even so, you are quite likely to get two different prices. So why is that? Let's analyze the reasons for this huge difference:
1. The similarity between the samples and the main products of the quoted factory.
Some factories produce one kind of product all the year round, such as our factory which is specialized in producing all kinds of cartoon animals earmuffs
, cartoon animals cap
, if there are any inquires from the client just asking about these products, the price quoted must be very accurate. Because all the raw materials and labor costs are well known, the quoted price will not differ much from the actual price. And because they buy the same kind of raw materials all year round, they get much cheaper prices than other factories that have not made similar products. But as for the factory that does not produce the same kind of products all year round, they are not familiar with the raw material and the craft. When quoting, they will always conservatively calculate the cost very high, much higher than the actual cost in order to prevent the loss after receiving the order. It is not surprising, then, that prices are sky-high. Thus it is most important to find a professional factory.
2. The size of the factory
Products like stuffed toys, are low in technology, so their prices depend on production management and purchase costs. The prices of the same product made by a factory with thousands of people, and a small factory with dozens of people, will be different. For large factories, the price has an advantage only if there are more than ten thousand orders. Small orders are a nightmare for large factories. Not only the delivery date is not guaranteed, but the quality will be terrible. Because they can't make enough profit from too small orders to maintain administrative overhead, because usually the total administrative costs of large orders and small orders are almost the same. The small orders simply cannot be shared there costs. While small factories can reduce management costs to a very low level. And more importantly, their quality is good. Because most of the big factories will put the extra orders into small factories for processing which have already adapted themselves to the strict requirements of export products. So don't be superstitious about big factories. Sometimes a small factory with good quality is the right thing to do.
3. Time of quotation
The price of stuffed toys has a very obvious cyclical fluctuation, which means there are clear high and low seasons. Generally speaking, from February to April, one to two months after the Chinese New Year, is the off-season. At this time, the quotation will be significantly lower than that of any other time. Because the number of workers in the factory is fixed, it will inevitably lead to overcapacity in the off-season. Factory directors often take orders below cost in order to maintain production. The customer's order will have a good return during this period, so hurry up and place the order. If it happens that your order can only be arranged in the peak season, we are sorry that the price will exceed your expectation and the delivery date will be very long. For the factory, in the peak season they will only choose those high profit and simple orders. Once they are at full capacity, there is basically only one way to accept more orders, that is to increase the quotation. After all, during the peak season, all the resources, including raw materials and labor wages, will rise and the factory will not get more profits from them. Therefore, try to arrange your order in the off-season.