Decision Guides · Pricing & Quotes

Compare Supplier Quotes

Normalize two or more supplier quotes to landed cost and pick the defensible winner, renegotiate the runner-up, or drop.

Stage 1 of 4Normalize every quote to the same unit

For: A buyer or category owner with two or more supplier quotes on the same product who needs to award, renegotiate, or drop them defensibly.

Use when: You have received two or more quotes on the same SKU and need a like-for-like comparison before opening negotiations or placing a PO.

Stop triggers
  • Quotes are on different Incoterms, currencies, or pack sizes and can't be normalised.
  • The lowest quote comes from a supplier you can't verify as a real legal entity.
  • A quote is only valid for hours or excludes freight, packaging, or duty without saying so.
  • The winning quote's MOQ is far larger than realistic sell-through.
  • Any supplier returns a sanctions or restricted-party hit.

  • Convert to one sellable unit
  • Align currency, Incoterm, and named place
  • Match MOQ tier and validity window
  • List what each quote excludes
G1Decision gate

· Comparable

Are the quotes truly like-for-like?

GoSame unit, currency, Incoterm, MOQ tier, and validity — exclusions listed.

HoldAn exclusion or term is missing — get it in writing.

StopQuotes can't be normalised at all.

G2Decision gate

· True cost

Is landed cost complete for each quote?

GoEvery quote has a credible landed cost with duty, VAT, and freight.

HoldA cost component is still a guess — refine it.

StopDuty or import-VAT can't be established for the leader.

G3Decision gate

· Credibility

Can the winning supplier actually deliver?

GoLegal entity, capacity, terms, and screening all clear.

HoldOne credibility signal is weak — pilot small before scaling.

StopSanctions hit, or supplier can't be verified.

Final decision

· Award

Is there a defensible winner?

GoOne quote beats the ceiling and passes every gate — AWARD.

HoldLeader is close but term-heavy — RENEGOTIATE first.

StopNo quote clears the ceiling or the credibility bar — DROP.

Common mistakes
  • 1Comparing FOB to CIF as if they were the same.
  • 2Missing the currency conversion and FX buffer.
  • 3Ignoring MOQ against realistic sell-through.
  • 4Rewarding the fastest response over the credible supplier.
  • 5Treating an emailed price as a binding quote without validity dates.
Worked example Landed comparison

The cheapest FOB is not the cheapest at your door.

  • Supplier A · FOB Ningbo$ 6.20 / unit
  • Supplier B · CIF Rotterdam€ 6.60 / unit
  • A landed at Rotterdam€ 7.35
  • B landed at Rotterdam€ 7.05
  • MOQ A vs B20k vs 8k
  • Lead time A vs B60 vs 35 days
Decision: AWARD Supplier B — lower landed cost, workable MOQ, and shorter lead time. Counter A on FOB for a follow-up lane.

Decision record

Record your outcome — a static, no-login summary you can copy, print, or screenshot.

Normalised unit + Incoterm
One shared basis
Landed cost per quote
Currency + FX buffer applied
Credibility notes
Entity + screening
Award / renegotiate / drop
Per supplier
Target buy price + ceiling
For the winner
Decision
AWARD / RENEGOTIATE / DROP

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