Materials

Compare Supplier Quotes: Find the Real Delivered Material Cost

Compare supplier quotes using the same quantity, pack sizes, discounts and delivery fees. Download the editable worksheet and follow a worked example.

Compare the cost of getting the required material to the job

Start with the same material specification and usable quantity. Convert each supplier's pack size to the same unit, round up to the packs you must purchase, then include applicable discounts, delivery, handling and quoted tax. That is the comparison that tells you what meeting the order will cost.

Download the supplier quote comparison worksheet (.xlsx). It includes three hypothetical quotes and calculates full packs, excess quantity and landed cost. Change the amber inputs to compare your own quotes. No signup is required.

In the example below, Supplier B advertises the lowest pre-discount price per foot, but Supplier C has the lowest landed total. The result follows from the entered prices and fees, not a claim about real suppliers or current material prices.

Make the quotes comparable before comparing their prices

Give each supplier the same specification, quantity, delivery destination, needed-by date, and acceptable substitutions. Ask the quote to identify grade, dimensions, unit of sale, pack quantity, availability, expiration, freight, handling, return conditions, payment terms, and applicable tax. A lower quote for a different grade or a later delivery is a different offer.

NIST's unit-pricing guide addresses the accuracy and usability of unit-pricing information in retail stores. The worksheet adapts that comparison principle to a contractor's quoted material purchase; NIST did not supply or endorse the example prices. Source: NIST SP 1181.

The sheet expects you to put every pack into one common unit first. For example, an 8-foot piece contains eight linear feet. Do not compare a price per square foot with a price per sheet until you have established the usable area of the exact sheet. Unit conversion does not establish that two products meet the same specification.

Worked example: 165 linear feet from three suppliers

Assume the project requires 165 usable linear feet of the same acceptable lumber specification. In this hypothetical case the cutting plan can use the quoted lengths, there is no additional cutting loss, and all suppliers meet the delivery requirement. No credit or future resale value is assigned to excess material. The example excludes tax by entering $0 for all three quotes; that is an arithmetic assumption, not a tax exemption claim.

Quote input Supplier A Supplier B Supplier C
Linear feet per purchased piece 8 16 10
Price per piece $16.80 $32.00 $21.50
Pre-discount price per foot $2.10 $2.00 $2.15
Applicable goods discount 0% 2% 0%
Delivery $45.00 $60.00 $20.00
Handling $0.00 $0.00 $5.00

Full-pack rounding matters. Supplier A requires 21 pieces, providing 168 feet. Supplier B requires 11 pieces, providing 176 feet. Supplier C requires 17 pieces, providing 170 feet. The requirement stays 165 feet for each offer.

The lowest unit price produces the highest landed total here

Calculation Supplier A Supplier B Supplier C
Goods before discount $352.80 $352.00 $365.50
Goods discount $0.00 $7.04 $0.00
Net goods cost $352.80 $344.96 $365.50
Delivery plus handling $45.00 $60.00 $25.00
Landed total $397.80 $404.96 $390.50
Cost per required foot, rounded $2.41 $2.45 $2.37

Supplier C costs $7.30 less than A and $14.46 less than B for this specified requirement. It wins this arithmetic comparison despite its higher price per foot. That does not establish that C is preferable if availability, grade, cutting yield, payment terms or return conditions differ.

The formula is: full packs × price per pack − applicable goods discount + delivery + handling + entered tax. Compare total landed cost against the same required quantity. The worksheet also shows cost per supplied unit; that denominator includes excess stock and can tell a different story.

Use the worksheet with your own quotes

Enter the required quantity and common unit once. For each supplier, enter units per pack, price per pack, a goods discount you can actually obtain, delivery, other fees and the applicable quoted tax amount. The sheet rounds purchase quantities up to whole packs and recalculates the comparison.

Enter 0 where a fee does not apply. If a required numeric input is blank, the affected result stays blank. A zero pack size produces a specific input note instead of a misleading price. The file contains no live price feed, hidden supplier lookup, or macros.

This is a one-material worksheet. For a multi-material order, group the full basket and allocate shared delivery consistently, or compare the full basket total outside this sheet. Charging one delivery fee to every line would overstate the order cost. Do not assume the cheapest line-by-line combination remains cheapest after multiple deliveries.

Use a complete comparison in the supplier conversation

Ask the account representative to improve the part of the offer that actually drives the result: full-order pricing, freight, minimum quantity, or delivery terms. In the example, lowering Supplier B's delivery charge may matter more than a small change to its already lower unit price. Present the same specification and required date when requesting a revised quote.

Confirm what qualifies for a discount and whether the business can meet the payment condition. A discount that requires cash earlier has a different effect from a lower unconditional price. Keep the quoted terms with the order and compare them with the final invoice. Do not promise a universal negotiation percentage or assume volume commitments are free.

If you pick up material yourself, compare the documented pickup cost with delivery rather than calling pickup free. Include the vehicle and labor assumptions you actually use. Avoid adding a guessed downtime charge that makes the comparison appear more certain than the information allows.

Check what arrived and what was billed

Match the purchase order, delivered quantity, accepted specification, and invoice. Record substitutions, damaged pieces, shortages, return credits, and additional trips. A quote comparison is only the starting estimate of material cost; the job needs the final invoices and credits.

Use consistent cost codes when transferring those amounts into the job-costing calculator and variance worksheet. That lets you distinguish a purchase-price change from excess quantity or an added delivery. If the project changed scope, reconcile that separately before treating all additional material as estimating error.

The material cost tracking guide can help frame the software questions once your purchasing process is clear. Start by making a single order traceable from requested quantity to final cost.

Frequently asked questions

Why can the lowest quoted unit price cost more delivered?

A quote may require larger packs or have higher delivery and handling charges. In the hypothetical example, the lowest price per linear foot belongs to Supplier B, but its rounded purchase quantity, discount and delivery charge produce a $404.96 landed total. Supplier C totals $390.50 for the same stated requirement.

Should I divide the total by purchased or required quantity?

Use required usable quantity to compare the total cost of satisfying this order, while keeping the purchased quantity visible. In the example, each landed total is divided by the same 165-foot requirement; leftover stock is shown rather than silently treated as free usable material for this job.

How do I handle delivery shared across several materials?

Compare the whole basket when possible. If you allocate a shared delivery charge to one line, write down that allocation and apply a consistent method to each quote. Do not charge the full delivery fee to every material and then also include it in the order total.

Sources

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