Quotation process and cost breakdown: getting a comparison you can decide on
We do not forward supplier quotes as received. We normalise the format, break the structure open and label the assumptions, so three quotes are genuinely comparable.
6 min read · 2026-08
Step 1 — shortlist, do not broadcast
We normally take one part to 3–4 candidates from the audited capacity pool, with at least two genuinely interchangeable on systems and capacity. Broadcasting an RFQ produces a pile of non-comparable low numbers and raises the cost of deciding.
Step 2 — normalise the quotation format
Every candidate receives the same RFQ package and the same quotation template, with a mandatory split into material, labour, finishing/outsourced steps, packaging, tooling and fixtures, overhead and margin, and logistics terms. A quote that folds items into a single unit price goes back for rework.
- ▪Material: grade, unit price and scrap rate
- ▪Labour: cycle time, manning and machine rate
- ▪Tooling and fixtures: one-off cost, cavities, life and ownership
- ▪Price breaks by MOQ, EAU and batch size
Step 3 — sanity-check the cost
We cross-check against material market prices and typical labour rates to judge whether a quote is sustainable. A price clearly below cost comes back during production as a change request, a price increase or a quality compromise — that risk is flagged in red on the comparison sheet.
Step 4 — comparison table and recommendation
The deliverable is one sheet: cost elements per supplier, system and capacity scores, risks found during the audit, tooling ownership, price breaks, plus our recommendation and the reasoning behind it. You decide; the basis is fully open.
Common pricing traps
These recur often enough in China sourcing to be worth checking line by line before signing.
- ▪Low tooling cost with unclear tool ownership, blocking a later transfer
- ▪Unit price quoted at maximum volume that actual orders never reach
- ▪Test fixtures, packaging or first-article inspection excluded
- ▪No agreed adjustment mechanism for FX, copper or resin prices
- ▪Validity period too short, forcing renegotiation
Quotation FAQ
- Does ZRG take supplier rebates?
- No. We are paid a sourcing management fee by you. Original supplier quotes and our breakdown are fully disclosed, and you can take the supply relationship over directly.
- Should tooling cost be amortised into the unit price?
- It can be, but only with an agreed amortisation quantity, tool ownership and settlement on early termination. We generally recommend quoting tooling separately with ownership assigned to the client.
- How long until we get the comparison table?
- Typically 10–15 working days with a complete package, including supplier clarification and one re-quote round; 3–4 weeks where tooling or complex testing is involved.