Why did my reorder price go up?

Short answer: A reorder price can change for several reasons, and some are within the buyer's control. Common causes are changes in material costs, such as yarn, fabric, elastic or packaging; smaller quantities per colour or size than the first order, which raise per-unit setup and fabric costs; specification changes, even small ones such as a new label or packaging; and changes in labour, energy or other costs at the factory. Exchange rates can also change the price in your currency. If the original quotation had a validity period, the reorder may simply fall outside it. Shipping terms also matter. If you change the Incoterms rule, for example from FOB to DDP, the price includes different responsibilities; ICC guidance notes that DDP is the only rule where the seller pays import tariffs, and suggests that the Incoterms rules can support price renegotiation when tariff rates change. To review the increase, ask the factory to explain which cost lines changed and by how much, compared with the first order's quotation. Check whether quantities or specifications changed. Consider options such as consolidating colours, ordering larger quantities, keeping packaging unchanged or planning orders earlier. Agree the new price in writing, with a validity period.

Common reasons

• Material cost changes.
• Smaller quantities.
• Specification changes.
• Factory cost changes.
• Exchange rates.
• Quotation validity.
• Shipping terms and tariffs.

How to review

• Ask for changed cost lines.
• Compare with the first quotation.
• Check quantities and specification.

A worked example

As an illustration, a brand could ask the factory to show the first order's breakdown next to the reorder breakdown, then discuss whether ordering more per colour would reduce the increase.

Questions to ask

• Which cost lines changed?
• Is the change temporary or lasting?
• Does a larger quantity reduce it?
• Is the price still on the same Incoterms rule?

Reducing future surprises

Agree how long quotations are valid and how price changes will be communicated. Some buyers agree to review prices at fixed intervals, or link fabric cost to a shared reference. Plan reorders early enough to compare options and avoid rushed decisions.

Checking the comparison

Make sure the first quotation and the reorder quotation cover the same specification, quantities, packaging and shipping terms. A difference in any of these can look like a price increase when it is really a different order.

Limits

Some cost changes are outside both parties' control. A clear breakdown makes the discussion factual.

Facts, recommendations and uncertainty

Established: Incoterms rules affect which costs a price includes, and ICC guidance notes they can support price renegotiation when tariffs change. Recommendation: ask which cost lines changed and review quantities and specification before agreeing. Uncertain: future material and currency changes.

Sources and further reading

• ICC Guidance Note — Using the Incoterms® 2020 rules to manage tariff risk (2025)
• ICC — Incoterms® 2020

Standards and regulations are referenced by their published scope. Test parameters, cycles and pass levels should be agreed with your laboratory for the specific product; legal requirements should be confirmed for each destination market.