Normalise unit prices before ranking supplier quotes

A unit price only makes sense when the unit, currency, quantity band and included scope are known. Suppliers may quote by carton, kit, weight or individual piece. Put all offers onto the same requested unit before drawing a conclusion.

Define the requirement

Write the RFQ quantity and unit clearly, including contents of a set or carton. Ask for a price at the initial order quantity and any separate volume bands. If you need a total landed comparison, ask for all relevant cost lines rather than assuming a unit price includes transport.

Questions to send with the RFQ

Request the calculation behind pack multiples and minimum quantities. A supplier can quote a low per-piece number that only applies above your required volume. Ask what happens to price if the actual order is rounded to the nearest carton or production batch.

Review the answer

Review the effective order total and deliverable count. Keep the original supplier figure visible, then show any conversion in your comparison sheet so someone else can reproduce it. Never present a converted number as if it were the supplier's own quote.

An example to adapt

A hypothetical price per carton of ten units needs to be divided against the correct count before comparing it to a piece price. If one carton also contains accessories, the scope changes as well as the arithmetic.

Decision before sending

If quotations use different units, preserve the supplier's original wording in one column and the buyer's comparable unit in another. Show the conversion formula and pack contents. This lets a colleague trace a result without asking you to reconstruct it. Do the same for setup fees and freight when preparing an effective total. A price comparison should be an audit trail, not a mysterious spreadsheet number. If a unit cannot be reconciled, return the question to the supplier.

Source context

The FAR line-item rules distinguish units, quantities and line items in procurement records. Use the same arithmetic discipline when comparing a price per piece with a price per set; record the conversion and keep freight or tooling on separate lines.