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How to compare supplier quotes

To compare supplier quotes fairly, ask every supplier to quote the same specification and quantity, then compare the total cost rather than the unit price alone. Put price, delivery time, payment terms and service in one table before you decide.

Ask for the same thing

Give each supplier the same description, quality level, quantity and delivery location. If one quote assumes a different product or volume, the comparison means nothing.

What to put in the table

  • Unit price and total price, excluding VAT
  • Delivery costs and minimum order
  • Delivery time
  • Payment terms
  • Contract length and how prices can change
  • Service, returns and complaints

Look at total cost

A low unit price can be offset by delivery charges, a high minimum order or a short lifespan. For repeat purchases, calculate the cost over a full year.

Then decide and record it

Choose, write down why, and confirm the terms in writing. That record helps when you compare again next year.

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