Should I tell a Chinese factory my target price?
Ask for a quote against the fixed specification before sharing a target. If you disclose one, define its currency, quantity and goods-only scope; keep your delivered budget separate. Request independent quotes without passing on rival prices. Your brief and replies can be reviewed by Cambridge China Bridge.
Decide what disclosing a target would achieve
A factory asking for your target may be checking whether your enquiry is feasible or which product configuration to offer. The question alone does not establish bad practice. If the specification is settled and you want to discover supplier pricing, ask for its quotation first. Naming a target can steer the offer towards that figure and make the original price harder to establish.
Sharing a target can help when you need an early feasibility check or want to explore a design change. Explain that it is a buying objective, subject to the agreed specification and scope. Keep your maximum acceptable spend private if you prefer. Use the factory-price ceiling guide to calculate that limit rather than inventing a negotiating figure.
Separate the goods target from the delivered budget
Label a goods-only target with the currency, whether it is per unit or for the order, the quantity and variant mix, and the specification revision. Define the included packaging and where the supplier's responsibility stops. List excluded costs explicitly. A delivery term alone is not a complete description of your target.
Keep a separate delivered-order budget for goods and any additional samples, tooling, checks, freight, insurance, clearance, duty, VAT and delivery to your named destination. Record each cost where it belongs without counting it again. Customs valuation includes transport, insurance, loading or handling connected with delivery to the UK border. Your goods-only negotiating target therefore does not define the customs value.
Keep the small-order specification fixed
Ask for the price at the quantity you can actually order, with setup charges shown separately. Treat possible reorders as a forecast, not a purchase commitment. If the factory proposes stock colours, standard packaging or a larger order to reach your target, request a separate alternative. The small-order and sampling guide explains the setup choices behind minimum quantities.
Require the original specification to remain the baseline even after you disclose a target. Ask the factory to identify every proposed change to materials, dimensions, finish, packaging or checks before you approve it. If the price falls without a stated change, ask whether the saving comes from production, commercial terms or an omitted item.
Collect independent quotations before negotiating
Send each factory the same enquiry pack and request its own quotation. For an initial comparison, withhold your target from all participating factories until their baseline replies arrive. Do not circulate rival quotations, supplier identities or prices to obtain matching bids. This preserves a clearer record of what each factory offered independently; it does not guarantee that the price reflects its production cost.
Use the factory enquiry email guide for the attachment and reply format. Save each original quotation before requesting revisions. If you later disclose a target, give each participating factory the same target scope and keep the revised offers separate from the baseline. Share specification clarifications consistently, without sharing another supplier's confidential information.
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Reply clearly and test the returned offer
Before disclosure, you can write: “Please quote the attached specification at the stated first-order quantity, using the delivery basis and named place in the enquiry. Show setup charges, exclusions and deviations separately. We would like your quotation before discussing a target. Please price any proposed alternative separately.”
If sharing a target, add: “Our target is [amount and currency] for [unit or order], covering [included goods and packaging] at [quantity and mix]. It excludes [listed costs]. Please retain the attached specification and state whether it is achievable.” Use the supplier quote comparison guide to check the response. A price matching your target still needs its scope confirmed.
Frequently asked questions
Should I give a factory my target price before it quotes?
Usually request its quote first when the specification is fixed. Share a clearly scoped target earlier if you need a feasibility check, while recognising that it may influence the offer.
What if the factory will not quote without a target?
Ask what information it needs and why. You can provide a scoped buying objective or seek another quotation. Keep your maximum spend private if you prefer; do not invent a budget.
Is my delivered budget the same as my factory target?
No. A goods-only target covers the stated goods scope. Your delivered budget also allows for costs outside that scope, including setup, checks, transport and applicable import charges.
Can I show a factory a cheaper competing quote?
For an independent baseline, ask each factory to quote without rival prices. Later, discuss your own scoped target and ask for an explanation of savings without forwarding confidential quotations.