Compare the Total Cost of Getting the Goods to You.
Compare supplier prices on the same delivery basis. Use a landed-cost worksheet to check freight, duties, MOQ, payment and missing assumptions.
A supplier’s unit price tells you what the quoted item costs on the stated terms. Landed cost asks what you must spend to bring that item to the agreed receiving point. Compare both before choosing a supply route.
Start by writing the delivery point at the top of your comparison. Then identify which charges are included in each quote, which fall to your business and which remain unknown. A low price with an incomplete delivery basis is an unfinished comparison.
Agree the Same Destination and Quantity
Use the same specification, usable quantity and destination for each supplier. Record the quoted delivery term and named place exactly as supplied. Ask for clarification if the quotation leaves either unclear.
A quote that includes delivery to your site cannot be compared directly with one that leaves the main freight movement to you. Ask who will arrange each part of the route and which costs sit outside the quotation. Obtain the missing costs before calculating a delivered total.
Build a Landed-Cost Worksheet
Copy this structure for each quotation. Keep the original quoted price beside your calculated comparison so the supplier’s offer remains traceable.
| Cost or assumption | What to record | What to check |
|---|---|---|
| Goods | Specification, quantity, unit price and currency | Same item and quantity across offers |
| Delivery basis | Quoted term and named place | Which transport and handling charges are included |
| Transport | Packing, freight and onward delivery as applicable | Route, load basis, quote date and exclusions |
| Import costs | Applicable charges and treatment supplied by the responsible adviser | Product, origin and destination match |
| Handling and receiving | Charges your business must pay before receipt | No cost counted twice |
| One-off costs | Tooling, samples or setup charged separately | Separate from repeat-order cost |
| Missing amounts | Description, owner and confirmation date | Leave blank until supported |
Keep recoverable taxes separate from costs your business ultimately bears. Ask your finance or customs adviser how to treat them for this purchase. A payment at import and a permanent cost are different entries in the decision.
Check the Cash Requirement Alongside the Total
A supplier may offer a lower unit price on a larger minimum order quantity, or MOQ. Calculate the amount you must order and pay for, then compare it with the amount your business expects to use. Do not divide excess inventory by a smaller demand quantity and call the result a supplier price.
Record deposits, balance payments and expected receipt dates separately. This shows when cash leaves the business and when goods become usable. The delivered cost alone will not show that timing.
Keep the Wider Supplier Decision Visible
Landed cost is one part of supplier selection. Samples, qualification work, changeover, quality problems and inventory management may affect the wider economics. Assess those in a separate total-cost review rather than hiding uncertain allowances inside freight or unit price.
If an amount is an estimate, show its basis and date. If freight, import treatment or a delivery charge is missing, identify it as unresolved. Public supplier information can help identify a possible source; it cannot supply the current terms for your actual order.
What to Do with the Comparison
Ask which missing cost could change the preferred supplier. Resolve that cost first. If the apparent advantage depends on an unsupported freight assumption or an unusable MOQ, return to the supplier or route provider with a specific question.
Have overseas and local quotes that are difficult to compare? Merillgrove can help review the delivery basis, costs and commercial terms behind the decision.