How to Choose Between Two Supplier Quotes
Most buying decisions come down to price because price is the number on the quote. But cost includes delivery reliability, payment terms, and what you know about how each supplier actually performs. Here is what to compare before you decide.
You receive two quotes for the same order. The unit price difference is clear. What isn't clear is whether the cheaper supplier will deliver on time, to spec, and without complications that end up costing more than the saving was worth. Price is the number on the page. Total cost is everything else that happens between placing the order and closing the job. Before you pick the lower quote, there are four things worth checking.
Price Is One Line. Total Cost Is the Whole Transaction.
The unit price in a quote is one component of what this order will actually cost you. Add up the rest before you decide.
Delivery: Is freight included in both quotes, or added separately? A saving on the product itself disappears if one supplier charges separately for freight and the other includes it. Ask for a fully landed price from each.
Additional charges: Setup fees, minimum order charges, amendment fees, and restocking charges on returns are rarely included in initial quotes. Request a breakdown of all potential costs upfront, not after you have committed.
Payment structure matters too. A supplier quoting payment terms of 30 days is effectively offering a short-term credit facility on that purchase. A supplier requiring advance payment before dispatch means you carry the cost of the order from the moment you place it.
Procurement decisions that don't account for total cost of ownership can erode 10 to 30 percent of targeted savings, according to research cited by Coler Supply Solutions. The number on the quote is where the comparison starts, not where it ends.
Use landed cost
Ask each supplier to confirm a single landed figure - unit cost, freight, and any applicable charges for samples or amendments. Compare that number, not the list price.
What Is the Delivery Date Based On?
Both quotes likely include a delivery date. The question is what that date reflects.
Is the stock available now, or does it need to be produced or sourced first? A supplier relying on a manufacturer to fulfill your order is giving you an estimated date. A supplier drawing from existing stock is giving you something closer to a commitment.
A supplier with a longer stated lead time but a reliable track record will often deliver more predictably than one with a shorter lead time who routinely misses it. A late delivery doesn't just delay the order - it delays your invoice, your installation date, and potentially the jobs scheduled to follow it.
When comparing delivery commitments, ask each supplier what happens to your order if there is a delay on their end. How that question is answered tells you as much about reliability as the date itself.
What Do You Know About Each Supplier?
If you have used both suppliers before, your order history tells you more than the quote does. On-time delivery rate, communication when something goes wrong, flexibility on last-minute changes - none of this appears in a quote document, but all of it determines how the job runs.
If one supplier is new to you, treat the lower price with additional scrutiny. A quote from an unknown supplier is a promise, not a track record. Asking for references or placing a smaller trial order before committing to full volume is reasonable caution, not unnecessary procedure.
UK businesses are increasingly weighing supplier reliability alongside price. Supply chain disruptions have demonstrated that delays, missed deliveries, and poor communication create costs that often exceed the initial saving, according to HR News.
New supplier, lower price
If you haven't used a supplier before, don't let a competitive quote override due diligence. A short trial order protects you from discovering their reliability for the first time on your most important job.
When the request for quotation process is structured and both suppliers are responding to the same specification, comparison is straightforward. When one supplier has quoted on different assumptions or a different scope, the prices aren't comparable until those differences are resolved.
A comparison done properly before confirming takes fifteen minutes. A poor choice - late delivery, a quality rejection, or a product that needs reordering at short notice - takes weeks to recover from and costs considerably more than the saving it was chasing.
Sources
- Supplier Selection Process: 7 Steps Procedure and Evaluation CriteriaPrecoro · accessed 2026-08-03
- Procurement - 5 Common Mistakes You Must AvoidColer Supply Solutions · accessed 2026-08-03
- Why More UK Businesses Are Prioritising Reliability Over Price AloneHR News · accessed 2026-08-03
Related pages
Ready to run your business
on one platform?
Book a free demo and see how Zigaflow fits your team.