A SilkNet Venture
health@thesilknet.com
Home / Guides / How factory direct pricing is built

How Factory Direct Pricing Is Built

A distributor's price is one number. A factory direct price is seven, and each one can be checked. That is the whole difference. This guide walks through a landed price for a disposable gown the way it appears on our quotation, so you can read anyone's quotation with the same eyes.

The Seven Lines

LineWhat drives it
1. MaterialNonwoven roll price per kilogram, times the gsm and the pattern area. Polypropylene resin is the input that moves it.
2. ConversionCutting, seaming, cuff and tie attachment, folding. Labour and machine time. This is where China and Cambodia differ most.
3. PackagingInner wrap, hand towels, poly bag, printed carton, labels. Private label artwork sits here.
4. SterilizationEO cycle, aeration, release testing, sterile barrier validation. Zero on non sterile product.
5. Freight and insuranceOcean or air to your port, quoted from the forwarder on the date. A 40 foot container carries tens of thousands of gowns depending on fold and pack.
6. DutyThe HTS rate for any origin, plus the China general rates and any product specific Section 301 surcharge for China origin. Cambodia origin drops the China lines.
7. The feeOur fee, one line, agreed before the order. It pays for the trail: verification, spec lock, QC, inspection, documents.

What Is Not on the Sheet

A sourcing agent's commission is paid by the factory and appears nowhere. It is inside line 1 or line 2, and you cannot see it. A distributor's margin covers real things, warehousing, credit, next day delivery, a sales rep, but it is also one number. Neither is wrong. They are simply not itemized, and a buyer who can carry a production run is paying for the itemization they are not getting.

How to Compare Two Quotations

  1. Put both on the same basis. Ex works, FOB and landed are three different numbers.
  2. Check the gsm and the layer count. A 35 gsm Level 2 gown and a 45 gsm Level 3 gown are different products at different prices.
  3. Check what the packaging line contains. Hand towels and double wrap are not free.
  4. Ask where the sterilization is done and who releases it.
  5. Ask what origin the duty line assumes.
  6. Ask who pays the intermediary, and whether the number on the sheet is the factory's number.

Our quotation answers all six without being asked. That is what a quotation is for.

Where to Go from Here

Every gown and drape on our protective apparel page is listed with its level, tests and construction. The tariff page carries the current duty picture for US buyers, and the quotation request takes a spec, a SKU or a competitor's item.