How to read a furniture factory quotation.

Field by field: what each line of a factory quote actually commits to, where the cost hides, and which absences matter more than the numbers.

A factory quotation is a legal-commercial document wearing the clothes of a price list. Reading it well means reading what it includes, what it excludes, and what it declines to say.

Scope — what product is actually being priced

Check the description against your specification line by line: dimensions, construction, materials, finish. Where the quote paraphrases your spec (“oak dining table” for a solid-oak spec) rather than confirming it, assume the cheaper reading until confirmed in writing. Most “price gaps” between factories are scope gaps.

Materials — the substitution zone

Solid vs veneer, foam density, fabric weight, hardware brands: this is where an aggressive quote earns its number. A price that undercuts the market by a wide margin is usually answering a different materials question — which the benchmark treats as a specification deviation, not a saving.

Packaging — included, excluded, or undefined

Three states, three risks. Included against a real specification is safe. Excluded is honest and priceable. Undefined — “standard export packaging” — is the dangerous one: it defers a real cost and a real damage-rate conversation until after you have committed.

MOQ — the quantity behind the price

Every unit price sits on a quantity assumption. A low price at an MOQ you cannot reach is not your price. Check which tier the headline number belongs to, and what happens at the tier you actually buy.

Tooling — visible or dissolved

Tooling either appears as its own line — cost, ownership, amortisation — or has been dissolved into the unit rate. Dissolved tooling makes a quote look expensive against one that excludes it silently; it also means you may never own tooling you have effectively paid for. Ask.

Incoterm — where the price stops

EXW, FOB, CIF: each is a different answer to “price for what, delivered to where?” A quotation without an Incoterm and a named place is not yet a price — this guide shows how much the difference moves the number.

Payment terms — the price of cash

A 30% deposit at order and balance at shipment is a different commercial offer from payment against documents at 60 days, even at the same unit price. Terms shift working capital and risk; read them as part of the price, not an administrative footnote.

Exclusions and validity — the quiet lines

The exclusions paragraph and the validity window are where quotations protect themselves. Note what is expressly excluded (testing? samples? inland haulage?) and how long the number holds. A 15-day validity on a 60-day decision process is a renegotiation scheduled in advance.

Reading one quote vs judging one quote

Careful reading tells you what a quotation says. It cannot tell you whether the number is competitive — only a market can. When the stakes justify it, validate the quotation against fresh, normalised quotes on the same specification.

Related guides

One quotation is a claim. A market is evidence.

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