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Sourcing

Why did my Chinese supplier’s price change after the quote?

Most post-quote increases have one of four causes: a material price move, an exchange-rate assumption, a specification that changed during sampling, or a quote given on different Incoterms from the one you are now discussing. Ask which. A supplier who cannot say precisely is usually repricing rather than recalculating.

A price that moves between quotation and order is common enough to be unremarkable and is not usually bad faith. It is, however, always informative — because the reason given tells you how the number was built, and therefore how stable the next one will be.

The four ordinary causes

CauseHow to tellWhat to do
Material cost movedThey can name the input and the direction. Metals, resins and cotton move on public marketsReasonable. Ask for the material share of unit cost so future moves are predictable
Exchange rateThe quote was in USD, the costs are in RMB, and the assumed rate was never statedFix the currency and the rate basis in the contract, or agree a band
Specification driftSomething changed during sampling — a thickness, a finish, a component, a certificationLegitimate, and usually your side’s doing. This is why the approved sample and spec sheet matter
Different IncotermThe first number was EXW or FOB and the new conversation is CIF or DDPNot a price change at all. Compare like for like before responding

The pattern that is not ordinary

A quote low enough to win the enquiry, followed by an increase once tooling is paid for, samples are approved and a delivery date is committed, is a recognised commercial tactic rather than a coincidence. The tell is timing and vagueness together: the increase arrives after you have sunk cost and cannot easily restart, and the explanation is general — "costs have risen" — rather than specific.

The defence is sequencing, not suspicion. Settle the price basis, currency, Incoterm and validity period before tooling is paid for, and the moment of maximum leverage stays on your side of the sample approval.

What to fix in writing at quotation stage

  • The Incoterm, with the named place. "FOB" without a port is not a term.
  • The currency, and whether either side carries the FX risk.
  • How long the quote is valid — a real date, not "for your reference".
  • What the price includes: packaging, cartons, marking, documents, inspection, certificates.
  • Which specification and which approved sample the price is quoted against.
  • Tooling: whether it is inside the unit price, charged separately, or amortised — and if amortised, over how many units.

When the increase is genuine

It often is, and treating a real cost move as bad faith damages a supplier relationship that is otherwise working. The distinction worth holding on to is between a supplier who explains a number and one who simply asserts a new one. The first is a business you can plan around. The second is telling you that price is a negotiation each time, which is a thing to know before you concentrate your volume there.

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Product Sourcing & Interpreting

Sources

All sources checked 7 September 2026. This page is general information, not legal, tax or customs advice. Requirements vary by product, market and circumstance — confirm your own position before acting.

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