Contract manufacturing quotation
Quotation template for factories making goods to order: tooling preparation, product manufacturing and pre-shipment inspection. Download it as Excel or Word.
Templates by industry
- Tooling preparation
- Product manufacturing
- Pre-shipment inspection
Preparation guide
Example workflow
Confirm scope and quantities
Example: start with "Tooling preparation", confirm the required quantity and client inputs, then agree completion criteria for each item.
Review and approve the quotation
Confirm acceptance evidence for "Pre-shipment inspection", all line quantities, exclusions and quote validity with the customer, and retain the approved version.
Deliver and prepare billing
Reconcile delivered quantities with approved specifications and hand over inspection and use or installation records. When the agreed milestone is complete, prepare an invoice using actual quantities and approved changes.
A contract manufacturer sends this quotation to a brand or buyer who wants a product made to their design. The one-time tooling cost is kept apart from the unit price, because the buyer pays for tooling once and then reorders at the unit price alone. Pre-shipment inspection is its own line too, with the standard and sample size agreed. State the minimum order quantity, the lead time from sample approval and who owns and stores the tooling.
Fields to prepare
- Deliverables and line items
- Tooling preparation, Product manufacturing, Pre-shipment inspection: specify the planned quantity and delivery scope for each item.
- Tooling preparation
- Describe the molds or fixtures and how many cavities or sets, and whether the cost is paid in full upfront or spread over orders.
- Product manufacturing
- Enter the order quantity and the unit price, and state the material and finish the price assumes.
- Pre-shipment inspection
- Name the inspection level or sample size and what happens to a batch that fails, such as rework at your cost.
- Specification and revision
- Record the approved drawing or file revision, material, dimensions, finish and agreed tolerances.
- Setup and production quantity
- Separate one-time setup from per-unit production and define inspection, packing and transport allowances.
- Scope to agree
- Define tooling preparation and storage arrangements, batch quantities and pre-shipment inspection items.
Before sending
- Does “Tooling preparation” say what is included and what quantity the price assumes?
- Would the customer read “Product manufacturing” the way you do, including what it leaves out?
- Can you still honour the price of “Pre-shipment inspection” on the last day the quotation is valid?
Show 3 more
- Define the sample or proof that must be approved before production and its approval deadline.
- Distinguish defect and rework handling from the cost of customer specification changes.
- Check quote validity, the customer approval method and payment milestones.
Worked example with sample figures
The figures below are invented to show how the template adds up: 3 lines in USD, with an example tax rate of 8%.
| Item | Quantity × unit price | Amount |
|---|---|---|
| Tooling preparation | 10 × $60.00 | $600.00 |
| Product manufacturing | 6 × $1,200.00 | $7,200.00 |
| Pre-shipment inspection | 8 × $180.00 | $1,440.00 |
| Subtotal | $9,240.00 | |
| Sales tax (8%) | $739.20 | |
| Total | $9,979.20 | |
Quoted net amount $9,240.00, sales tax $739.20, quoted total $9,979.20.
What the document must show
The details a quotation has to show, and why each one matters, are set out in the guide below.
The sales tax depends on where the work is supplied, so set the rate that applies to your customer before sending.
Official rate reference: US government: state and local taxes
Full requirements: How to write a quotation: format, example and checklist
Frequently asked questions
Who owns the tooling once it has been paid for?
Settle it in the quotation. Buyers who pay for tooling usually expect to own it, so state whether you store it, for how long, and whether it can be moved to another factory and on what notice.
What lead time should I write?
Count it from the approval of the pre-production sample rather than from the quotation date, since sample rounds can take weeks. Give production time and shipping time separately, so a delay in one does not hide in the other.
Should packaging be priced separately?
If the product needs printed boxes, inserts or retail packaging, price them on their own line or in a separate quotation. Packaging is often the part that changes between the first quotation and the confirmed order, and a separate line is easier to revise.
How is the sales tax worked out on this quotation?
The worked example above uses an example rate of 8%: $739.20 on a net amount of $9,240.00, for a total of $9,979.20. The editor recalculates all three when you change a quantity, a price or the country.
Can I use it in another language or currency?
Yes. The document language can be set to any of 33 languages, and changing the country setting updates the currency, the date format and the tax rate.
Read next
Reading for the Contract manufacturing quotation: How to write a quotation: format, example and checklist and Quotation vs invoice: differences and timing. The VAT and GST calculator adds tax to your quoted prices.