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Five things a quote leaves out

A supplier says "forty-two dirhams". It is a complete answer to a question nobody asked precisely enough, and comparing supplier quotes like that one against the forty-five you got yesterday is how buyers end up paying more for the cheaper quote.

By 5 min read

The hard part of comparing quotes is not arithmetic. It is that a price is shorthand for a set of assumptions the supplier did not state and the buyer did not ask about, and two suppliers making different assumptions produce two numbers that look comparable and are not.

There are five of these, and they account for most of the surprises.

1. What the price is per

Per piece, per metre, per box of fifty, per kilo. This is the single most common mismatch and the easiest to miss, because both suppliers answered the question you asked — you just asked "how much" and they each supplied their own unit. A price without its basis is not a price, and the fix is to make the supplier say the unit out loud rather than inferring it from the number's size.

A worked example

Supplier A

AED42.00

Basis
per piece
Quantity
quoted for 100
Works out at
AED 42.00 each

Supplier B

AED45.00

Basis
per box of 10
Quantity
quoted for 250
Works out at
AED 4.50 each

AED 42.00 a piece against AED 4.50 a piece. The cheaper-looking quote is the expensive one.

Made-up numbers, real trap. Both suppliers answered the question honestly; only one of them was asked it properly.

2. What quantity it assumes

Prices move with volume, so a quote for your quantity and a quote for the supplier's minimum order are different products. It is tempting to scale — if 100 pieces are 4,200, then 250 must be 10,500 — and it is almost always wrong, because the discount structure is exactly the thing you were trying to discover. A price arrived at by multiplication is a price nobody actually offered.

If you worked the number out yourself, it is not a quote. It is an estimate wearing a quote's clothes.

3. Whether VAT is in it

Five per cent is small enough to ignore in conversation and large enough to reorder a shortlist where the top three quotes are within a few per cent of each other. Suppliers vary in whether they quote inclusive or exclusive by habit, and neither habit is wrong — it just has to be recorded, because a ranking that mixes the two is sorting on two different quantities.

4. Where it gets to

Ex-works, delivered to your site, delivered to the emirate but not to the floor. Freight across the UAE is rarely the difference between two quotes, but on bulky or heavy goods it can be, and it is the term most likely to be left implicit — the supplier assumes you will collect, you assume they will deliver, and neither of you finds out until the day.

5. How long it stands

A quote on a commodity is a snapshot with a shelf life. Some are good for thirty days; some are good until the next container lands. Knowing which is what tells you whether you are choosing a supplier or merely choosing today's number, and it is worth one extra question at the end of the call.

How do you compare supplier quotes? The same five questions, every time

Five questions that make two prices comparable

Basis

Per what — piece, metre, box, kilo?

Quantity

At my quantity, or at your minimum?

VAT

Inclusive or exclusive?

Delivery

Ex-works, or to my site?

Validity

How long does this price stand?

Worth photographing before your next call.

None of this is specialist knowledge. Every experienced buyer knows all five, and every experienced buyer still ends up with a spreadsheet where two rows are not comparable, because asking all five on every call to every supplier is a discipline that survives about as long as a busy week.

It is, however, exactly the kind of discipline a machine keeps. The agent in our AI procurement platform asks for the price and the basis it is quoted on, anchors it to the quantity you actually want rather than scaling anything itself, reads the number back to the supplier before moving on, and records what was said. Where suppliers quote in different currencies, each one is converted at the rate on the day it was given and the original is kept beside it.

What arrives at the end is a comparison in which the rows are genuinely comparable — and, just as usefully, the recording and transcript behind each one, for the day a delivered price turns out not to have been a delivered price. To see one built from your own product, see the agent call a real supplier.

Stop ringing round.

Submit one request and the agent calls the suppliers in parallel. No card, no setup — a ranked comparison comes back in about twelve minutes.