Understanding how suppliers charge and what drives cost is the foundation of any good manufacturing cost breakdown. This page explains how factory pricing works and what sits inside your unit price.
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Most factories think in unit price plus conditions, not just total order value.
Price per piece based on specifications, quantities, and terms.
One-time costs like moulds, dies, print plates, or special setup.
Printing, special packing, lab tests, extra QC, or other add-ons.
Ex-factory, FOB, CIF, or DDP including freight and duties.
Understanding these cost drivers helps you adjust specs intelligently.
Material grade, thickness, and finish all move cost up or down.
Simple products cost less in labour than complex multi-step products.
A small one-colour logo is cheaper than full-coverage specialty inks.
Tooling explains high upfront cost for custom products.
Stricter compliance usually increases overhead.
Smaller or riskier orders may carry higher margins.
Two buyers can ask for almost the same product and receive very different prices.
Higher volumes reduce unit cost by spreading fixed setup costs.
More colours, sizes, or features increase labour and QC work.
Tighter tolerances and higher AQL standards add cost.
Rush orders require overtime or line reshuffling at a premium.
New customers or unclear briefs increase margin buffers.
The goal is sustainable margin — not pushing price to the absolute bottom.
What founders often get wrong about manufacturing costs.
Suppliers can always cut price without changing anything.
Deep discounts usually mean something changed — materials, QC intensity, or service level.
The cheapest quote is always the best quote.
A low quote excluding packaging, compliance, or shipping can cost more long term.
Price is purely about negotiation skill.
Base costs (materials, labour, third-party fees) still set the floor.
Factory margin is always the biggest piece of the price.
In many categories, materials and logistics are the largest components.
If two factories quote different prices, one must be lying.
They may be quoting different specs, materials, or QC standards.
Instead of guessing what's behind quotes, Sourcy helps you see the pricing structure clearly.
Align on specs, quality level, and target unit cost.
See key cost drivers and trade-offs side by side.
Adjust MOQs or packaging to reach sustainable pricing.
If you're planning a new product and want help understanding pricing, cost drivers, and factory margins, Sourcy can help.
*It's Free. No credit card required.