The money half of a factory negotiation: reading a quotation, tax and invoices, trade terms, deposits and balances, haggling lines, and the numbers that trip learners up.
一个价格,五个问题 yí ge jiàgé, wǔ ge wèntí · One Price, Five Questions
谈价 (tánjià) is "talk price"; 讲价 (jiǎngjià) and 砍价 (kǎnjià, "chop the price") are the market-stall versions. A unit price on its own tells you little. Before comparing two factories, establish five things about each number: the currency, whether tax is included, the trade term (where the goods are handed over), the quantity it assumes, and how long it is valid. Two quotations of "4.20" can differ by fifteen percent once those are fixed. The phrases in this section are the questions that pin them down, and the sections below explain the answers you will hear.
报价单bàojiàdānquotation sheet
报价 (bàojià) is both the verb "to quote" and the noun "quote." Ask for it in writing, line by line: 分项报价 (fēnxiàng bàojià) is an itemised quote that breaks out the product, packaging, tooling, and printing.
Could you prepare an itemised quotation, with packaging and printing listed separately?
单价dānjiàunit price
The price per piece; 总价 (zǒngjià) is the total, 金额 (jīn'é) the amount on a line. The usual follow-up is what the unit price includes: 包括 (bāokuò) and 不包括 are the words to listen for.
这个单价包括彩盒和外箱吗?
Zhège dānjià bāokuò cǎihé hé wàixiāng ma?
Does this unit price include the colour box and the master carton?
有效期yǒuxiàoqīvalidity period
How long a quote holds. Factories tie it to material prices, especially steel, and to the exchange rate (汇率 huìlǜ). A quote with no date can be reopened at any time.
How long is this quote valid? If steel prices rise, will you adjust the price?
阶梯价jiētījiàtiered pricing
"Staircase price": the unit price falls as quantity rises. Asking for a tier table is the cleanest way to learn the factory's real cost curve, and it moves the conversation from "lower the price" to "at what quantity."
Néng gěi yí ge jiētījià ma? Yìqiān, sānqiān, wǔqiān, yíwàn fēnbié shì duōshao?
Could you give tiered pricing? What is the price at 1,000, 3,000, 5,000, and 10,000 respectively?
成本chéngběncost
What the factory pays, as opposed to 价格 (jiàgé), what you pay. 原材料 (yuáncáiliào, raw materials) and 人工 (réngōng, labour) are the two cost lines you will hear cited when a price goes up. 利润 (lìrùn) is profit.
Nín shuō yuáncáiliào zhǎng le, dàgài zhàn chéngběn de duōshao?
You say raw materials went up. Roughly what share of the cost are they?
发票fāpiàoTax and Invoices
含税还是不含税 hánshuì háishi bù hánshuì · Tax In or Tax Out
China's value-added tax, 增值税 (zēngzhíshuì), is 13% on most manufactured goods sold by a general taxpayer. A price can be quoted 含税 (hánshuì, tax included) or 不含税 (bù hánshuì, tax excluded); you will also hear 裸价 (luǒjià, "naked price"), which some suppliers use for the tax-free figure and others for the bare product without packaging, so ask which. The gap is the full 13%, so ask every time. As a general pattern, a price quoted in US dollars for export is usually tax-exclusive, because exported goods are zero-rated and the exporter of record can reclaim input VAT as 出口退税 (chūkǒu tuìshuì, export tax rebate). A price quoted in RMB often assumes a domestic buyer who wants a VAT invoice, and includes the tax. If you are paying in dollars and the price is 含税, ask what you are paying the tax for.
含税hánshuìtax included
含 is "to contain." The pair 含税 / 不含税 appears on almost every RMB quotation; 含运费 (hán yùnfèi) is freight included, 含包装 packaging included. The same 含 works for anything the price might or might not cover.
这是含税价还是不含税价?
Zhè shì hánshuì jià háishi bù hánshuì jià?
Is this price with tax or without?
发票fāpiàoinvoice; official tax receipt
In China 发票 means an official, tax-registered invoice, not a bill a company can print for itself. 专票 (zhuānpiào) is the special VAT invoice that lets a Chinese business buyer deduct input tax; 普票 (pǔpiào) is the ordinary one. For export trade the documents are different: 形式发票 (xíngshì fāpiào) is the proforma invoice (PI) you pay against, and 商业发票 (shāngyè fāpiào) the commercial invoice that travels with the goods.
Please send the proforma invoice first; once we've checked it we'll arrange the deposit.
出口退税chūkǒu tuìshuìexport VAT rebate
The refund of input VAT on exported goods, claimed by whoever exports them. A factory with its own export licence (自营出口 zìyíng chūkǒu) claims it directly; one without exports through a trading company (外贸公司 wàimào gōngsī), which adds a layer of margin. Asking who exports tells you who is in the chain.
Do you have your own export rights, or do you export through a trading company?
贸易条款màoyì tiáokuǎnTrade Terms
谁付到哪儿 shéi fù dào nǎr · Who Pays How FarEXW 出厂价 chūchǎngjià → ex works: you collect at the factory gate and pay everything after FOB 离岸价 lí'ànjià → free on board: the factory pays until the goods are loaded on the ship at the named port CIF 到岸价 dào'ànjià → cost, insurance, freight: the factory pays sea freight and insurance to your port DDP 完税后交货 wánshuì hòu jiāohuò → delivered duty paid: the seller covers freight, import duty, and delivery to your door
离岸价lí'ànjiàFOB price
"Leave-shore price." Most export quotes are FOB, always with a port: FOB宁波, FOB深圳. In speech people simply say the letters, F-O-B. The port matters, since inland trucking to a distant port is part of the factory's cost.
这个价格是FOB哪个港口?
Zhège jiàgé shì FOB nǎge gǎngkǒu?
This price is FOB which port?
运费yùnfèifreight charge
海运 (hǎiyùn) is sea freight, 空运 (kōngyùn) air freight, 快递 (kuàidì) express courier for samples. 货代 (huòdài) is the freight forwarder. 整柜 (zhěngguì) is a full container load, 拼柜 (pīnguì) a shared one.
We have our own forwarder, so you only need to quote FOB.
付款fùkuǎnPayment
定金不是订金 dìngjīn bú shì dìngjīn · Two Deposits That Sound the Same
The most common terms are 30% deposit and 70% balance, written 百分之三十定金,百分之七十尾款 or simply "30% T/T". Before you write the word "deposit" in Chinese, know that two characters are pronounced dìngjīn and mean different things in law. 定金 (with 定, "to fix") is a legal earnest under Articles 586 and 587 of China's Civil Code: if the buyer walks away it is forfeited, and if the seller fails to perform it must pay back double. It is capped at 20% of the contract value; any amount above that does not count as 定金. 订金 (with 订, "to book") has no such rule and is treated as an advance payment, refundable against the price. 预付款 (yùfùkuǎn, prepayment) is the neutral term. Which word appears in your contract decides what happens to the money if the deal fails, so choose it deliberately and have a lawyer check it.
尾款wěikuǎnbalance payment
"Tail money." What triggers it is the real negotiation: 出货前 (before shipment), 验货后 (after inspection passes), or 见提单副本 (jiàn tídān fùběn, against a copy of the bill of lading). The later the trigger, the more leverage you keep.
We pay the balance against a copy of the bill of lading; that's our standard term.
验货通过以后再付尾款。
Yànhuò tōngguò yǐhòu zài fù wěikuǎn.
The balance is paid after inspection passes.
电汇diànhuìwire transfer (T/T)
"Electric remittance," usually just called T/T. 信用证 (xìnyòngzhèng) is a letter of credit (L/C), slower and more paperwork, with the bank standing between the parties. 手续费 (shǒuxùfèi) is the bank charge; agree who bears it, or the factory will receive less than the invoice and ask you for the difference.
付款方式是电汇,银行手续费各付各的。
Fùkuǎn fāngshì shì diànhuì, yínháng shǒuxùfèi gè fù gè de.
Payment is by T/T, and each side pays its own bank charges.
水单shuǐdānbank remittance slip
The bank's proof that you sent the money, also 汇款水单. The factory will ask for it the moment you say you have paid, and production often waits for it. Send it promptly; it is the fastest way to start the lead-time clock.
The deposit went out today; I've sent you the remittance slip on WeChat, please check.
账户zhànghùbank account
收款账户 (shōukuǎn zhànghù) is the receiving account. Fraudsters impersonate suppliers by email and announce new bank details. Treat any 换账户 (huàn zhànghù, change of account) message as suspect until confirmed by phone or video with a person you know, and check that the account name matches the company on the contract.
We must confirm any change of account by phone, and the payee must match the company name on the contract.
讲价jiǎngjiàHaggling Lines
有来有往 yǒu lái yǒu wǎng · Give and Take
A factory expects to be asked for a better price, and its first quote usually leaves room for the request. Asking flatly and repeatedly for a lower number tends to produce a cheaper material rather than a smaller margin. The more productive move is the trade: offer something the factory values, such as a larger quantity, a faster deposit, a longer forecast, or fewer colours, and ask for a price in return. The softeners that keep this courteous, 能不能 (néng bù néng), 麻烦 (máfan), and 我们也理解 (wǒmen yě lǐjiě, "we understand too"), are covered on the meeting-room page; the lines below are the price-specific ones.
您会听到 nín huì tīngdào · What You Will Hear Back这已经是最低价了 zhè yǐjīng shì zuì dī jià le → "this is already the lowest price": sometimes true, often the opening line of the next round 我们几乎没有利润 wǒmen jīhū méiyǒu lìrùn → "we make almost no profit": a standard line, not a statement of accounts 原材料涨了 yuáncáiliào zhǎng le → "materials went up": ask by how much and which material 量大可以谈 liàng dà kěyǐ tán → "with volume we can talk": name a volume and get a number 我去申请一下 wǒ qù shēnqǐng yíxià → "let me apply for it": the salesperson needs the boss's sign-off, and is likely on your side
便宜一点piányi yìdiǎna bit cheaper
The basic request, best softened. 价格有点高 (the price is a bit high) states the problem without accusing; 还有空间吗 (is there still room?) invites a counteroffer without naming one.
This price is a little high for us. Is there any room left?
目标价mùbiāojiàtarget price
Naming your target moves the discussion from "lower" to "can you reach this." Give it with a reason, such as a retail price point or a competing quote (另一家的报价 lìng yì jiā de bàojià), without naming the other factory.
If we raise the deposit to 50%, could you take another two percent off?
让价ràngjiàto concede on price
让 is "to yield." 让利 (rànglì) is giving up margin; 降价 (jiàngjià) is simply lowering the price, 涨价 (zhǎngjià) raising it, 还价 (huánjià) making a counteroffer. 底价 (dǐjià) is the floor price a side will not go below.
We'll give a little on our side too: the delivery date can move out by a week.
一言为定yì yán wéi dìngit's a deal
"One word and it is fixed." The spoken handshake once the number is agreed. Follow it at once with a written confirmation; the WeChat page in this series has the message templates.
English groups digits in thousands; Chinese groups them in ten-thousands. 万 (wàn) is 10,000 and 亿 (yì) is 100,000,000, so 100,000 is 十万 (shí wàn, "ten ten-thousands") and a million is 一百万. Quantities and totals in a factory meeting are spoken this way, and a slip of one place is a tenfold error. The safe habit is to write every number down and ask the other side to read it back. Percentages and discounts carry their own trap, below: 打八折 does not mean 80% off.
Spoken prices use 块 for the main unit, 毛 for tenths, 分 for hundredths; written prices use 元, 角, 分. The trailing unit is often dropped: 四块一 is 4.10, 三块八五 is 3.85. Factories apply the same words to dollars, so add 美金 (měijīn) or 人民币 (rénmínbì) when it could be either.
Did you just say 3.85 in RMB, or 3.85 in US dollars?
打折dǎzhéto give a discount
折 counts tenths of the price you pay, not the amount taken off. 八折 means you pay eight tenths, a 20% discount. Learners hear "eight" and think "80% off." In a negotiation 点 (diǎn, a percentage point) is more common than 折 for small moves.
第二个订单能打九五折吗?
Dì-èr ge dìngdān néng dǎ jiǔ wǔ zhé ma?
Could the second order get 5% off?
汇率huìlǜexchange rate
A factory that quotes in dollars but pays its costs in RMB carries the exchange risk and may ask to reprice when the rate moves. 汇率波动 (huìlǜ bōdòng) is fluctuation. Agree a reference rate, or a band within which the price stays fixed.