How to compare supplier quotes without getting fooled by the lowest price
Three quotes land, the prices differ by 30%, and it is tempting to pick the lowest and move on. But a quote is a bundle, not a number — unit price is one line among several that decide what the order actually costs and how much risk you carry. Here is how to put quotes on the same footing.
Get every quote onto landed cost
Unit price times quantity is only the start. To know the real cost, add:
- GST — and confirm whether it is included or "extra."
- Freight to your location. Ex-works and delivered are completely different prices.
- Packaging, loading, and insurance, where they apply.
- One-time charges — tooling, mould, or setup fees spread across the order.
Add those, divide by the usable units, and you have the real per-unit cost. That number often reorders the quotes.
Line the quotes up on the terms that bite
Put the quotes side by side on the factors that actually change the deal:
| Factor | Why it matters |
|---|---|
| Unit price + GST | The headline — but only one part |
| MOQ | A lower price at twice your quantity is dead stock, not a saving |
| Lead time | A 10-day vs 30-day gap can cost you your own customer |
| Payment terms | 100% advance vs 30/70 is real cash flow and real risk |
| Freight basis | Ex-works from another state is not free |
| Warranty / returns | Who pays when a batch is wrong |
Normalise the specs before the price
A quote is only comparable if every supplier quoted the same thing. If one quoted SS-201 when you asked for SS-304, it is not cheaper — it is wrong. A clear RFQ with exact grade, standard, and quantity is what makes three quotes comparable in the first place.
Watch the cheap-quote patterns
- GST missing from the quote and appearing on the invoice.
- Ex-works pricing that hides a large freight bill.
- A tempting price pinned to an MOQ far above what you need.
- A "sample price" that jumps once you order production quantity.
Score, do not just sort
Pick the three or four factors that matter for this order — say price, lead time, and terms — and weight them. The winner is frequently the second-cheapest quote: better terms, a realistic lead time, and a supplier who actually answers the phone.
Bottom line
Put quotes on landed cost, compare terms and not just price, and make sure everyone quoted the same specification. If lining them up is a chore, we send you a clean side-by-side comparison of vetted quotes. Next, check how to vet the supplier behind the quote.