Buy Bearings Direct From Factory

Compare buying bearings direct in container lots with buying from local stock over five years: unit price, freight, lead time, stock holding. Your figures.

This is a framework for comparing two ways of buying bearings over a five-year horizon, using your own figures. It does not assume factory-direct wins — fill in both columns and compare the totals.

Cost model: fill in both columns

Cost itemFactory-direct (container lots)Local stock
Unit price per piece__________
Freight and duty per piece (landed cost — see the landed cost calculator)_____Usually included in local price
Smallest order quantity per shipment_____Usually none, or much smaller
Lead time per order_____ (weeks, factory + sea freight)_____ (days, from local stock)
Stock carrying cost (capital tied up between shipments)_____Lower — you hold less
Stockout risk (cost of a size being unavailable when needed)Lower once stocked_____
Annual order volume this applies to__________

Working out the five-year total

  1. Multiply unit price plus landed cost per piece by your annual volume, for each side, to get an annual materials cost.
  2. Add an estimate of stock carrying cost: average stock value held x your cost of capital (or opportunity cost) per year.
  3. Add an estimate of stockout cost on the side where it applies — lost production time or expedited freight, if a size runs out.
  4. Multiply the annual total by five, and compare the two columns.

The crossover point is usually annual volume: a small, irregular order volume often favours local stock despite the higher unit price, because it avoids tying up capital in a container’s worth of stock; a steady, larger volume usually favours factory-direct once freight and duty are spread across enough pieces.

Assumptions to check before trusting the result

  • Freight and duty rates change — use current figures from the landed cost calculator, not old quotations.
  • Smallest order quantities and lead times vary by factory; confirm current figures before building a five-year plan around them.
  • Local distributor pricing and stock availability vary by region and are not something a factory can quote on your behalf.

Send your model list, volumes and current local price (if you want a direct comparison) to sales@fuli-bearings.com or use the request a quote form for current factory-direct figures to put into this model.

FAQ

Is factory-direct always cheaper than local stock over five years?

Usually on unit price once freight and duty are spread across a full container, but not always on total cost — it depends on your order volume, how much capital you can tie up in stock, and how much a stockout actually costs your operation. The model below is for working out which side wins with your own numbers, not a universal answer.

What is the main hidden cost on the factory-direct side?

Carrying cost on the stock you hold between container shipments. A container landed once a quarter means holding, on average, roughly half a quarter's worth of stock at any time, tying up capital and warehouse space that a local-stock buyer does not carry.

What is the main hidden cost on the local-stock side?

The price premium the local distributor charges for holding stock and breaking it into smaller quantities, plus the risk of a size being out of stock when you need it, which a container order avoids by committing to specific sizes and quantities up front.

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