01 / A price comparison begins by making the quotations comparable

A price comparison begins by making the quotations comparable

Two manufacturers can appear to quote the same product while pricing different scopes. One may include materials and pattern development; another may assume customer-supplied fabric and approved technical files. One price may be EXW; another may include delivery. Putting the unit prices next to each other does not create comparability.

01Scope
02MOQ
03Fixed cost
04Terms
05Risk
02 / Lock the comparison basis

Lock the comparison basis

01

Same product / revision.

02

Same core drawings and specification.

03

Same material and component assumptions, or clearly labelled alternatives.

04

Same quantity, colour and size architecture.

05

Same quality and packaging requirements.

06

Same requested development and sampling scope.

If a supplier proposes a different solution, preserve it as a scenario rather than silently comparing it as if it were the same product.

03 / Separate unit cost from fixed and development cost

Separate unit cost from fixed and development cost

Cost type
Examples
Behaviour
Comparison question
Unit cost
Labour · allocated materials
Volume-dependent
What is included per finished unit?
Development
Pattern · programming · engineering
Stage / project dependent
Is this included or separate?
Tooling
Moulds · dies · lasts · hardware tools
Mostly fixed
Who owns and reuses it?
Material commitment
Excess yarn · leather · fabric · components
Upstream MOQ
What cash is committed beyond units?
04 / Normalise the material assumption

Normalise the material assumption

For each quote, record the material supplier/article or an equivalent specification: composition, weight or thickness, colour, finish and substitution status. If two factories priced different fabrics or leathers, you may still have useful alternatives — but you do not have a pure manufacturer-price comparison.

05 / Normalise MOQ and minimum cash exposure

Normalise MOQ and minimum cash exposure

Record whether the minimum applies per order, style, colour, size run, material, component or tool. Then calculate the actual minimum cash order.

EXAMPLE

Lower unit price does not automatically mean lower launch exposure.

A €39 unit price at a 300-unit minimum commits €11,700; a €45 price at 100 units commits €4,500. Which route is stronger depends on demand, margin and the value of preserving cash.

06 / Normalise the commercial term

Normalise the commercial term

An EXW price and a delivered price are not equivalent. Identify the Incoterm or delivery basis and who carries export clearance, collection, freight, insurance, import duty, customs handling and final delivery. Do not add a vague “shipping estimate” and call the result landed cost.

07 / Normalise development scope and timing

Normalise development scope and timing

Ask what is included before production: pattern, grading, programming, product engineering, first sample, fit sample, size set, colour sample and pre-production sample. Then decompose time into development, materials, samples, approvals, bulk, QC and delivery.

A supplier that appears more expensive may actually be quoting a materially larger service perimeter.

08 / Compare payment terms as a financing structure

Compare payment terms as a financing structure

Record development payment, tooling deposit, production deposit, balance timing and any credit terms. Two identical total prices can create different peak working-capital requirements when the payment schedule changes.

09 / Add the cost of correction and execution risk

Add the cost of correction and execution risk

Some of the largest manufacturing costs are not on the first quote: extra sample rounds, remakes, rejects, air freight, late delivery, markdowns, returns and management time. They cannot be predicted perfectly, but supplier behaviour provides evidence.

01

Quality of the first sample.

02

Clarity of technical questions.

03

Transparency about assumptions and subcontracting.

04

Response to corrections.

05

Documentation and version control.

06

Evidence of comparable production.

10 / Use gates before scores

Use gates before scores

Weighted scorecards can organise evidence but can also hide a critical failure. Technical capability, acceptable quality, commercial viability, compliance where relevant and feasible capacity should act as gates. Only suppliers that pass the gate should be compared on softer trade-offs.

DECISION RATIONALE

Write why the preferred supplier is preferred.

“Supplier A costs €4.20 more but requires half the MOQ, includes development and reached the approved sample in fewer rounds” is a decision rationale. “Supplier A scored 87/100” is not.

11 / Quote comparison template

Quote comparison template

Field
Supplier A
Supplier B
Supplier C
Product version
Unit price / Incoterm
MOQ / minimum cash
Development included
Samples / tooling
Material minimum
Lead time
Payment terms
Open questions
FAQ

FAQ

Should every manufacturer receive the same technical pack?

For a comparable RFQ, suppliers should receive the same controlled core requirement. Supplier-specific development alternatives can then be recorded separately.

Is the cheapest quote usually wrong?

No. It may be the best route. Price becomes meaningful only after scope, minimums, materials, service and terms are normalised.

How many quotes should I compare?

Enough to create credible alternatives. A small qualified shortlist generally produces stronger evidence than a large set of shallow, incomparable prices.

What should I do with missing information?

Mark the field as missing and clarify it. Do not invent a value merely to complete the spreadsheet.