Unit price is the least informative number in an OEM negotiation. The terms below determine what the product actually costs over three years, and each one should be settled in writing before the deposit is paid.
- Tooling and mold ownership – who owns the molds, whether the cost is amortized into the unit price, and what happens to them if the relationship ends.
- Exclusivity – model, territory, and duration, with a clear statement of what the factory may still sell to whom.
- Intellectual property – your brand and industrial design, ownership of new engineering work, and responsibility for freedom to operate.
- Certification ownership – who holds the test reports and technical file, who pays for renewals, and who pays when a standard is revised.
- Warranty structure – separate terms for LED modules, drivers, and electronics, with a stated response time and a spare parts availability period.
- Lead time and capacity – quoted lead time in peak season, monthly capacity, and priority rules when demand exceeds it.
- Payment terms – the balance should be released against an inspection report, not against a photograph of a pallet.
- Incoterms 2020 – the named place, customs clearance responsibility at each end, and the importer of record.
- Penalties – liquidated damages for late delivery and a defined remedy for a failed inspection.
- Change notification – no bill-of-materials change without written approval, with a defined notice period.
Two of these deserve extra attention in this category. Spare parts availability matters because a red light therapy bed is a long-lived capital item, and a clinic that cannot replace a driver in year four will complain in public. Certification ownership matters because a red light therapy bed supplier who holds your technical file holds your ability to keep selling, and moving to a second source later means rebuilding the file from scratch.
