A Supplier Raised the Price. What Should You Test Before Accepting It?
An increase creates a decision. It does not automatically create a sourcing project.
Contents 3
Test the Increase Before Testing the Alternative.
Test the Basis
Ask what changed, when it changed and what evidence supports its effect on your actual basket and quantity. Do not infer overcharging from the increase alone.
Rebuild the Baseline
Record unit price, MOQ, delivery basis, payment dates, lead time, qualification and operational dependency.
Normalize Alternatives
Compare the same currency, quantity and delivery basis. If freight is unknown, it is not zero.
Keep Qualification in the Economics
A lower quote is not equivalent while specification, samples, capacity or switching work remain unresolved.
Choose the Strongest Position
Retain, renegotiate, qualify further, second-source, re-RFQ, change the requirement, switch or accept. The evidence determines the position.
A Lower Unit Price Can Require More Cash.
Current: $10 × 1,000 MOQ = $10,000. Alternative: $9 × 5,000 MOQ = $45,000. The alternative commits $35,000 more to goods before freight, payment, qualification and switching are resolved.
It may still be the better decision. Compare the full commercial basis before choosing.
Put the Comparison to Work.
Use the free worksheet to record evidence and open actions. If live quotations remain hard to compare, the bounded Cost Review can examine the position. Technical, legal, tax and regulatory questions may need specialist review.