Supplier price comparison: how to tell if you're overpaying | archim
Supplier price comparison: how to tell if you're overpaying
How to normalise prices with different units of measure and find the genuinely cheapest offer.
In short: Supplier price comparison: how to tell if you're overpaying
How to normalise prices with different units of measure and find the genuinely cheapest offer.
- •1. Convert everything to the same unit
- •2. Include transport and extras
- •3. Consider quality and availability
Comparing supplier quotes seems easy until units of measure start changing: one quotes per quintal, another per cubic metre, another per pallet. Without normalisation you risk choosing the most expensive offer without knowing it. In this guide we see how to compare correctly.
1. Convert everything to the same unit
The first step is to pick a reference unit. For example, if you're buying concrete, choose cubic metres and convert all quotes to €/m³. Even if one supplier quotes in €/kg or €/ton, conversion is essential.
2. Include transport and extras
A low list price can become expensive once transport, unloading, tolls or express charges are added. When comparing, use the landed price at site, not just the material price.
3. Consider quality and availability
Price per unit matters, but it's not the only factor. Also evaluate lead times, material certification, supplier reliability and payment terms. A few cents saved per unit can turn into a loss if the material arrives late.
4. Keep a price history
The best benchmark for judging a quote is what you've already paid in the past for the same item. If you keep a history by supplier, site and period, you immediately spot an out-of-market price.
What to do next
A correct price comparison requires patience and a method. Once set up, the saving repeats on every subsequent purchase. Use our free tool to quickly normalise offers with different units.
FAQ
Continue
Go deeper with the related resources.
Compare supplier prices with our tool
Enter quotes with different units and find the lowest real price per unit.
Book a free demo