What are the stages of choosing a factory?
Choosing a factory goes through nine consecutive stages, starting with your product specification and ending with your own decision. Each stage either narrows the list or adds information you need for the comparison.
- Defining the request: we take the product specification, the quantity, the destination country and the target price, if you have one.
- Search and initial list: we look for factories that actually make your product.
- Initial screening: we rule out factories that do not fit the product, the quantity or your market’s requirements.
- Quotations on one basis: we ask the remaining factories to quote on the same specification.
- Comparison: we compare the quotations on total cost and risk, and identify the shortlisted factories.
- Samples: we request samples from the shortlisted factories, follow them up and arrange their dispatch.
- Verification or audit: we verify the shortlisted factories before any contract, from their records or through an on-site audit.
- Negotiation: we negotiate specifications and prices with the factory directly in Chinese.
- Recommendation and your decision: we present the comparison and our recommendation, and you choose the factory.
What do we need from you to start?
We need four pieces of information: product photos, a link or a specification; the approximate quantity; the port or city of arrival; and your target price, if you have one. Based on these, we agree the scope of work with you.
The more precise the specification, the easier the quotations are to compare, because every factory is pricing the same thing. A clear specification sets out:
- The raw material and its grade by name, not a general description.
- Dimensions and weights, with the allowed tolerances.
- Colour, printing and logo.
- The certificates or safety requirements of the destination market.
- Inner and outer packaging, and labels.
How do we find factories and narrow down the list?
We look for factories that actually make your product, then screen the list with specific questions before asking any of them for a quotation. The supplier search takes about one week on average. During screening, we ask about each factory:
- Does it make this exact product, or only similar ones?
- Is it a factory or a trading company? A trading company is not necessarily ruled out, but you should know who you are dealing with.
- Does its stated production capacity fit your order quantity and timeline?
- Does its minimum order quantity fit the quantity you need?
- Can it provide the certificates your market requires?
- Does it answer technical questions clearly?
We do not ask factories that fail this screening for quotations, so the comparison is not crowded with options that will not work. The details of this service are on the supplier and product sourcing page.
How do we make quotations comparable?
We ask every factory to quote on the same specification, the same quantity and the same delivery term, so that a price difference is a real difference and not a different product.
Two quotations for products that look alike in photos can differ in material, thickness or packaging, or one may be priced ex works (EXW) and the other on board the vessel at the port of export (FOB). When a factory leaves an item unclear, we clarify it with them directly in Chinese before their quotation enters the comparison. We ask every quotation to state:
- The unit price, and whether it includes packaging, printing and moulds, if any.
- The delivery term the price is based on.
- The minimum order quantity and the production lead time.
- The sample cost and how long the sample takes to prepare.
- The payment terms and how long the quotation remains valid.
On what basis do we compare factories?
We compare factories on total cost and risk, not on unit price alone. The first comparison identifies the shortlisted factories, and the sample and verification results are then added to it. These are the criteria we weigh:
| Criterion | What we compare | Why it matters |
|---|---|---|
| Unit price | The price on the same specification, quantity and delivery term, and what it does and does not include | The lowest figure may leave out costs that show up later |
| Minimum order quantity (MOQ) | The smallest quantity the factory accepts, against the quantity you need | A quantity above your needs raises what you pay upfront and what stays in your stock |
| Production lead time | The time the factory commits to, and its capacity against the size of your order | It decides when the goods reach your market |
| Sample quality | How closely the sample matches the specification in material, dimensions, finish and function | The sample is the first practical evidence of what the factory can make |
| Certificates | The certificates or test reports the destination market requires, and whether the factory can provide them | Without them, the shipment may be held on arrival |
| Packaging and labels | Packaging type, carton dimensions and required labels | It affects how well the goods are protected, the shipping volume and compliance with market requirements |
| Payment terms | The deposit amount, when the balance is due, and whether the balance is tied to inspection | They decide how much you pay before you can inspect the goods |
| Communication | How quickly and clearly the factory replies, and how well it understands the specification | Misunderstood details show up later as differences in quality |
| Verification result | Registration and business scope, whether it is a factory or a trading company, and the audit result if one was done | A low price from an unverified supplier is a risk the figure does not show |
What do we mean by the right price for the required specification?
We mean the lowest total cost for a product that matches your specification, from a factory that can actually make it, not the lowest figure in the unit-price column. Total cost covers what you actually pay and what you may lose, so we add to the unit price:
- What the price leaves out: such as moulds, printing or custom packaging, if they fall outside the unit price.
- The effect of the minimum order quantity: buying more than you need means more money tied up in stock, and it can sometimes be negotiated, as we explain in our article on minimum order quantity.
- The effect of time: a longer lead time, or a sample that needs changes, can delay the goods past the selling season.
- The effect of risk: an unverified supplier, a missing certificate or a large payment before inspection are all potential costs that do not show in the quotation.
A quotation far below the others is reviewed before we compare it, because the gap often means a different material or a difference in what the price includes. So the factory we recommend may not have the lowest unit price, and in that case we explain the reason for our recommendation.
How do we test shortlisted factories and negotiate with them?
We test them with samples and by verifying the factory before any contract, then negotiate with them directly in Chinese.
Samples
We request samples from the shortlisted factories, follow them up and arrange their dispatch, so that each sample can be checked against the specification for material, dimensions, finish and function. The approved sample becomes the reference that production and later inspections are measured against.
Factory verification or audit
Before any contract, we verify the factory at one of two levels, with the scope agreed with you:
- Supplier verification without a visit: business registration, business scope and ownership, and whether the supplier is a manufacturer or a trading company, checked against official records.
- On-site factory audit: a visit to verify licences and records, production capacity, production lines, workforce and quality systems, with a photo report and recommendations.
The report is in English. The service details are on the factory audits page, and if you already have a factory you chose yourself, you can request a factory audit directly.
Negotiation
We negotiate specifications and prices with factories directly in Chinese, so the details of the specification reach the factory as they are, without getting lost in translation. Whatever is agreed should be written into the proforma invoice or the contract before any payment.
Why is our recommendation not tied to any factory?
Because we charge our service fees and commissions only to the party that requests the service, which is usually the importer, and in that case we take no fees or commissions from factories or suppliers. This has a direct effect on how a factory is chosen:
- No factory pays us to be recommended, so the ranking in the comparison rests on your specification and its total cost.
- We can tell you plainly when the cheapest quotation does not match your specification.
- In that case, our interest lies with the party that requested the service and pays for it.
Whenever you deal with an intermediary in China, ask them directly: do you also take a commission from the factory? Our own service fees are paid only to the company’s bank account, as set out on the payment information page.
Who chooses the factory in the end?
You choose the factory; we present the comparison and our recommendation with the reasons behind it, and the final decision is yours. The comparison includes:
- The shortlisted factories’ quotations on the same specification.
- The sample results, checked against the specification.
- The verification or audit result for each factory that was checked.
- Our recommendation of a specific factory, with the reasons and the risks we see.
After your choice come quality control during production and before shipment, then shipping arrangements; we do not handle customs clearance in the destination country. To start, contact us with your product specification, the quantity and the destination country.
Quality control process → Shipping process & methods → Work samples →
