When partnering with an OEM factory, the initial unit price is just the tip of the iceberg. Savvy businesses know to ask detailed questions to uncover potential hidden costs that can significantly impact the final budget. One major area is tooling and mold charges. Creating custom molds, jigs, and fixtures for your specific product design requires a substantial upfront investment. This cost is often non-recurring but is typically paid by the client before production begins.

Another critical factor is the Minimum Order Quantity. Factories set MOQs to make production runs economically viable. A lower per-unit price often comes with a higher MOQ, tying up more capital in inventory. Be wary of costs associated with samples and prototyping. While some initial samples might be complimentary, multiple rounds of revisions or fully functional prototypes usually incur separate charges.

Logistics and packaging are frequent sources of unexpected expenses. Clarify if the quoted price is EXW, FOB, or CIF. EXW means you pay for all shipping, insurance, and customs from the factory gate. Custom packaging, manuals, and labeling also add cost. Compliance and certification fees, such as for safety standards or import regulations, are often the client's responsibility and require budgeting.

Finally, consider costs for quality control beyond the factory's standard checks. Hiring a third-party inspection service adds expense but mitigates risk. Communication and travel for in-person meetings, though sometimes necessary, also contribute to the total cost of collaboration. A transparent and detailed contract is your best defense against surprises, ensuring both parties have a clear understanding of all financial obligations from the outset.