How to Read a Knitwear Quotation: FOB Price Breakdown for Buyers
Updated 5/31/202612 min readBy Licheng Knitwear Team
Learn to read a sweater quote line by line — yarn, knitting, linking, trims, overhead and margin — plus Incoterms, what's not included, and the red flags that separate a real quote from a number designed to win the order.
1. Overview
Learn to read a sweater quote line by line — yarn, knitting, linking, trims, overhead and margin — plus Incoterms, what's not included, and the red flags that separate a real quote from a number designed to win the order. This guide walks you through the manufacturing journey with Licheng Knitwear.
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When a factory sends back a quote, most buyers look at one number: the FOB price. But a knitwear quotation is a story about how your product is built — and learning to read it line by line is the difference between negotiating from knowledge and guessing. This guide breaks down what's inside a sweater quote, what each line means, and the red flags that separate a real quote from a number designed to win your order and renegotiate later.
A quote that's missing its assumptions — gauge, yarn count, weight per piece, Incoterm, MOQ — isn't a quote, it's a teaser. Always ask for the breakdown. A transparent factory will give it to you.
Read a quote line by line, not just the bottom-line FOB number.
What a complete quotation should contain
Style reference and a photo or tech-pack link
Gauge (e.g. 7GG), yarn composition and count, and net weight per garment (the single biggest cost driver)
MOQ per style and per colour
Unit price with the Incoterm (FOB, EXW or CIF) clearly stated
Sample cost and sample lead time, plus bulk lead time
Payment terms (commonly a deposit + balance)
Validity date (yarn prices move)
The anatomy of a sweater's cost
Roughly, a knit garment's FOB price is built from these components. Shares vary by gauge and yarn, but this is a useful mental model:
Incoterms: what the price does and doesn't include
EXW (Ex Works) — price at the factory door; you arrange and pay for everything after.
FOB (Free On Board) — most common in knitwear; price includes getting goods onto the vessel at the export port. You handle freight and import duty.
CIF — adds sea freight and insurance to the destination port.
Two quotes are only comparable if they use the same Incoterm. An "EXW" price will always look cheaper than an "FOB" price for the same garment — that's not a discount, it's a different scope.
Compare quotes on the same Incoterm, gauge and weight — or you're comparing nothing.
Red flags in a quotation
No weight per piece stated. Yarn is 40–60% of cost; if weight is vague, the price is too.
A price far below the others. Often it's a thinner yarn, lower count, looser construction, or a number that climbs once you're committed. Cross-check against the 2026 sourcing benchmark report.
MOQ that seems too good but ignores per-colour minimums.
No sample cost or lead time — a sign the development conversation hasn't really happened.
1. Normalise the Incoterm and MOQ across all quotes.
2. Compare yarn composition, count and weight — not just price.
3. Factor in sampling speed and reject risk, which affect landed cost and your season.
4. Ask each factory to quote the same tech pack — see how to prepare a sweater tech pack.
Get a transparent quote
Licheng Knitwear quotes with the breakdown shown — gauge, yarn, weight, Incoterm, MOQ, sample and bulk lead time — so you can compare apples to apples. Send your product idea, reference photo or tech pack and target quantity, and request a quote. We'll come back with a clear, itemised proposal, or browse product directions to start from a style you like.
2. The Custom Knitwear Process
A clear development flow keeps samples, costing and bulk production aligned before your order moves forward.
1. Inquiry
Share your idea, tech packs and requirements.
2. Design & Yarn Selection
We recommend yarns and create an initial direction.
3. Sampling
Develop samples for fit, look and function.
4. Production
Bulk production with stage-based quality control.
5. Quality Inspection
QC checks help confirm workmanship, measurements and packing.
6. Packaging & Delivery
Packing and delivery details are discussed by order.
3. Materials & Yarn Selection
The right yarn defines handfeel, performance and durability. Material choice can be adjusted by season, market and target price.
Natural Fibers
Wool, cotton, cashmere and silk directions
Blended Yarns
Wool blends, cotton blends and acrylic blends
Responsible Yarn Options
Organic cotton and recycled fiber discussions
Performance Yarns
Merino, anti-pilling and functional yarn directions
4. Design & Development
From reference photos to tech packs and pattern review, our team helps turn ideas into a manufacturable knitwear direction.
Design consultation
Tech pack and specification support
Pattern and structure review
Jacquard, intarsia and custom detailing
Quality is not only one step in the process. It is checked throughout development and production.
20+
Years Experience
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Global Clients
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On-time Delivery
5. Sampling & Approval
Plan each detail clearly before bulk production to reduce risk and improve buyer communication.
Proto sample
Fit sample
Pre-production sample
6. Production & Quality Control
Plan each detail clearly before bulk production to reduce risk and improve buyer communication.
Knitting, linking and finishing
In-line and final inspection
Stage-based QC process
7. Packaging & Delivery
Plan each detail clearly before bulk production to reduce risk and improve buyer communication.
Custom labels and hangtags
Packaging discussions
Shipping support discussion
8. Costs & Lead Times
Cost and timeline depend on yarn, gauge, construction, color count, quantity and packaging requirements.
MOQ
Reviewed by style, yarn and project
Sample Lead Time
Confirmed after material and gauge review
Bulk Lead Time
Confirmed by quantity and production plan
9. Best Practices for Success
Use these practical points to make sampling and bulk production easier to manage.