How to Read a Sweater Quotation: FOB, EXW and Unit Price Breakdown
Quick answer
EXW covers the goods at the factory door, FOB adds delivery to the named port and export clearance, and CIF adds sea freight and insurance to your destination port. An EXW number always looks cheaper than FOB for the same garment, so never compare across terms without converting to the same basis. Ask for the breakdown covering yarn, knitting and linking, dyeing and finishing, trims, packing and margin, plus the quantity assumed, validity, colourways and sizes covered, and payment and packaging terms.
Two suppliers can quote the same sweater at very different prices and both be honest — because the numbers may be built on different terms. If you cannot read the trade terms and know what the unit price includes, comparing quotes is guesswork. Here is how to read a knitwear quotation properly.
Start with the trade term, not the number
The three terms you will see most often are EXW, FOB and CIF. They define where the supplier's responsibility ends, and they change the price substantially.
- EXW (Ex Works) — the price covers the goods at the factory door. You arrange everything else: inland transport, export clearance, freight.
- FOB (Free On Board) — the price includes delivery to the named port and export clearance. Most common for apparel sourcing.
- CIF (Cost, Insurance, Freight) — the price also includes sea freight and insurance to your destination port.
An EXW quote will always look cheaper than an FOB quote for the same garment, because it excludes costs you still have to pay. Never compare numbers across different terms without converting them to the same basis.
What a sweater unit price actually contains
A well-prepared quotation can be broken down, and asking for the breakdown is a sign of a professional buyer. The main components are usually:
- Yarn — often the largest single cost, driven by fibre type and weight.
- Knitting and linking labour — gauge and construction complexity.
- Dyeing and finishing — garment dye, washing and anti-pilling treatments.
- Trims — buttons, zips, labels, hangtags.
- Packing — polybags, cartons, retail-ready folding.
- Overheads and margin — factory and supplier costs.
When one quote is dramatically lower, the difference is almost always in yarn composition, gauge, weight or finishing — not in generosity.
Questions that reveal a quote's real value
- What quantity does this price assume? Unit prices usually step down by quantity.
- How long is the quote valid? Yarn prices move, so validity periods matter.
- What is included in the sample fee? And is it credited against bulk?
- Which colourways and sizes are covered? Extra colours or plus sizes can add cost.
- What are the payment terms? Terms are part of the commercial cost.
- Is packaging included? Retail-ready packing often costs extra.
Comparing two quotes fairly
Put the quotes side by side on the same basis: same trade term, same yarn spec, same gauge, same quantity, same packaging, same payment terms. Only then is the comparison meaningful. If a supplier cannot or will not specify the yarn and finishing, treat the price as indicative rather than firm.
It also helps to ask for a target-price conversation rather than a straight comparison. If you know your retail price, tell the supplier — a good one will propose where to adjust yarn, gauge or finishing to hit it without destroying the garment.
What a good quotation looks like
A professional quote is clear about scope: item description, composition, gauge, sizes, colourways, quantity tiers, trade term, packing, lead time, payment terms and validity. If yours is a single number on a line, ask for the rest before you commit.
Our OEM/ODM quotations state the trade term, yarn spec, quantity tier and lead time up front, and we are happy to break down the cost drivers when you are planning a range.
The underlying cost drivers are broken down in our notes on what drives sweater price.
Want a clear, itemised quote for your knitwear styles? Send us your spec and target quantity.
Get a free quote Visit yzrsweaters.comFrequently asked questions
Why is an EXW quote always cheaper than an FOB quote?
Because EXW covers only the goods at the factory door, so you arrange inland transport, export clearance and freight yourself. FOB includes delivery to the named port and export clearance, and CIF also includes sea freight and insurance to your destination port. Never compare numbers across different terms without converting them to the same basis.
What does a sweater unit price actually include?
Usually yarn, knitting and linking labour, dyeing and finishing, trims such as buttons, zips and labels, packing, and factory or supplier overheads and margin. Yarn is often the largest single cost. When one quote is dramatically lower, the difference is almost always in yarn composition, gauge, weight or finishing, not in generosity.
What questions reveal a quotation's real value?
Ask what quantity the price assumes, since unit prices step down by quantity, and how long the quote is valid, because yarn prices move. Ask what the sample fee includes and whether it is credited against bulk, which colourways and sizes are covered, what the payment terms are, and whether packaging is included. Retail-ready packing often costs extra.