Never compare suppliers on the unit price written on their card. That number hides different MOQs, price tiers, Incoterms and carton sizes — so the "cheapest" quote is often the most expensive once it reaches your warehouse. The right way is to normalize every quote to the same currency, unit and quantity, then rank on landed cost at your target quantity, not on the sticker price.
You walk a hall at the Canton Fair or Yiwu market, collect twelve quotes for the same folding storage box, and three of them look close. Back at the hotel you line them up and the "$1.85" supplier suddenly doesn't look so cheap. This article is the method to make that comparison honestly.
Why the raw unit price is misleading
A quote scribbled on a business card is a single number stripped of its context. Four hidden variables move the real cost far more than the price itself.
Different MOQ and price tiers
The MOQ (Minimum Order Quantity) is the smallest batch a factory will produce. A price of $2.00 at MOQ 3,000 and a price of $1.85 at MOQ 5,000 are not comparable — the second is only real if you actually buy 5,000. Most factories quote tiered pricing: the per-unit price drops as volume rises (e.g. $2.10 at 2,000 / $1.95 at 5,000 / $1.80 at 10,000). Comparing one supplier's 10,000-piece tier against another's 2,000-piece tier is meaningless.
Different Incoterm
The Incoterm (Incoterms® 2020, the international trade rules published by the ICC) decides who pays for what and up to which point. Three you will meet constantly on the floor:
- EXW (Ex Works) — price is the goods at the factory gate. You pay inland trucking to the port, export clearance, ocean freight, everything. The lowest-looking number, the most cost hidden behind it.
- FOB (Free On Board) — the seller delivers the goods loaded on the vessel and cleared for export; you pay ocean freight and insurance from there (who pays what under FOB vs CIF).
- CIF (Cost, Insurance and Freight) — the seller pays ocean freight and minimum insurance to your destination port. Higher sticker, less to add.
A $1.85 EXW quote and a $2.10 CIF quote can invert completely once you add freight to the first.
Different carton specs → different CBM → different landed cost
Two factories can quote the same product but pack it differently: 40 pieces in a bulky carton versus 60 pieces in a dense one. CBM (cubic meter, the volume unit for sea freight) per unit then differs — and ocean freight is billed by volume. A bulkier pack "eats" more of your container, so it carries more freight per piece. That single fact is enough to flip a ranking. (See how to calculate CBM and container fill.)
Normalize before you compare: the six variables
Before two quotes can be compared, drag them onto the same footing. Six things must match.
| Variable | Normalize to | Why it bites |
|---|---|---|
| Currency | One reference currency, one FX date | A CNY and a USD quote aren't comparable until converted at the same rate |
| Unit | Per piece (not per carton/set/dozen) | "Price per set of 3" hides a 3× difference |
| MOQ & tiers | The price at your target quantity | A cheap tier you'll never reach is fiction |
| Quality / spec | Same material, thickness, certification | A thinner-gauge version is a different product, not a cheaper one |
| Lead time | Days to ready-for-shipment | 60 days vs 25 days can cost you a whole season |
| Incoterm + CBM | Landed cost per unit at your port | Freight and duties change the ranking |
Currency conversion sounds trivial until you have quotes in USD, CNY and EUR on one page — convert them all to one reference before you even look. (Fairloop derives its rates from your trip settings so every price shows in one currency.)
Price at target quantity, not at MOQ
The single most useful habit: decide your target quantity first, then ask every supplier for the price at that quantity. If you plan to buy 5,000 pieces, a supplier's MOQ-2,000 price and their MOQ-10,000 price are both noise. Force every quote onto your target line. This also gives you leverage — see how to negotiate MOQ and tiers.
Worked example: three suppliers, one product
Same folding storage box, target order 5,000 units, shipped to your port. Freight allocated at $220/CBM; duty at 4% of CIF value (verify the real rate for your HS code and country). Insurance ~$0.01/unit.
| Supplier A | Supplier B | Supplier C | |
|---|---|---|---|
| Unit price (sticker) | $2.00 | $1.85 | $2.10 |
| Incoterm | FOB Shenzhen | EXW Yiwu | CIF your port |
| MOQ | 3,000 | 5,000 | 2,000 |
| Pack (pcs/carton) | 50 | 40 | 60 |
| Carton volume | 0.060 m³ | 0.065 m³ | 0.050 m³ |
| CBM per unit | 0.00120 | 0.00163 | 0.00083 |
| + Inland to port / export | — | +$0.12 | incl. |
| + Ocean freight / unit | +$0.26 | +$0.36 | incl. |
| + Duty / unit (4%) | +$0.09 | +$0.09 | +$0.08 |
| Landed cost / unit | $2.36 | $2.43 | $2.18 |
| Total @ 5,000 | $11,800 | $12,150 | $10,900 |
Read the last row. Supplier B has the cheapest sticker ($1.85) and the most expensive landed cost — its EXW terms hide inland trucking and export clearance, and its bulkier carton (higher CBM) piles on freight. Supplier C has the highest sticker ($2.10) and wins by $1,250 over B, because it packs densely (low CBM) and quotes CIF, so almost nothing is left to add. Deciding on the card price alone would have cost you 11% on this order. Run your own numbers with the landed-cost calculator.
The apples-to-apples checklist
Before you rank suppliers, confirm each quote is normalized on all of these:
- Currency — all converted to one reference currency, same FX date.
- Unit — price per single piece, not per set/carton/dozen.
- MOQ & tiers — the price at your target quantity, in writing.
- Quality & spec — same material, gauge, finish and certification; sample confirmed.
- Lead time — production days to ready-for-shipment, plus transit.
- Incoterm — you know exactly where the seller's responsibility ends.
- CBM — carton dimensions and pieces per carton captured, so freight can be allocated.
- Landed cost — the final ranking number, at target quantity, delivered to your port.
Rank on the last line only. Everything above it exists so that last number is honest.
FAQ
Is the supplier with the lowest unit price ever the right choice?
Sometimes — but only after you have converted every quote to landed cost at your target quantity. Roughly half the time on the fair floor, the lowest sticker loses once freight (driven by CBM) and Incoterm gaps are added. Never decide before that conversion; the sticker is a starting point for comparison, not the comparison itself.
What is "landed cost" and why compare on it?
Landed cost is the total cost of a product once it reaches your warehouse: goods price, inland transport, ocean freight, insurance, customs duty and import taxes, and handling. It is the only figure that reflects what you actually pay per unit, so it is the only fair basis for ranking suppliers. See the full landed-cost method.
How do I compare quotes with different MOQs?
Pick your target quantity first, then ask each supplier for the per-unit price at that quantity (most will quote tiers). Ignore prices tied to volumes you won't buy. If a cheaper price only exists at an MOQ above your need, treat it as unavailable — or use it as a negotiation anchor rather than a real option.
Does the Incoterm really change the ranking?
Yes, frequently. An EXW price excludes inland trucking, export clearance and all freight; a CIF price already includes ocean freight and insurance to your port. Comparing an EXW sticker against a CIF sticker without adding those costs is the single most common comparison mistake buyers make at trade shows.
Why does carton size matter if the product is identical?
Because sea freight is billed by volume (CBM), not weight, for most consumer goods. A supplier who packs 40 pieces in a bulky carton makes each piece "consume" more container and carry more freight than a supplier packing 60 pieces densely — even at the same unit price. Always capture pieces-per-carton and carton dimensions on the floor.
Comparing the same product across suppliers — converting currencies, normalizing to your target quantity, allocating freight by CBM and ranking on landed cost — is exactly what Fairloop does with the quotes you capture on the fair floor. You photograph each product with its price, MOQ and carton once; the comparison happens for you back at the hotel.