Build the price up from its parts — material, labour, machine time, overhead, tooling and margin — then see how far a real quote sits from it, and what that gap is worth as a negotiating position.
A should-cost model builds an estimated factory cost from the product's materials and production steps. Use it to make a supplier conversation specific: which assumption explains the difference between the model and the quote?
Should-cost asks what it may take to manufacture the agreed product. Landed cost asks what it costs your business to obtain it, including the logistics and other charges that apply to the transaction.
A modelled factory cost is not proof of a supplier's actual cost, an independently verified market price, or a guaranteed negotiation target. Differences can reflect process choices, quality controls, capacity, purchasing scale or assumptions that need correction.
Once you have real quotations, use the supplier quote comparison calculator to compare their delivery terms and costs. Use the EU import duty and VAT calculator for a separate calculation using verified rates.
Price is one part of the decision. Work through the Chinese supplier verification guide before committing funds, and keep unsupported supplier claims separate from checked evidence.
Carry your cost assumptions into a clear buyer brief. For a product-specific supplier comparison and recommendation, explore the paid research report format.
