What makes two supplier quotes truly like-for-like?

The same part revision, tolerances, finish, packaging, freight terms and annual volume. If one quote excludes a finishing step or assumes a larger quantity, that share of the gap sits outside comparable scope.

Why is confidence entered separately from the price gap?

A quoted price can move with material indexes, currency or volume before the year ends. Confidence discounts the comparable gap so a firm quote and a verbal indication do not look equally bankable.

Should the impact outside comparable scope be ignored?

No. It is the part of the gap you cannot compare fairly yet. Ask the supplier to price the missing scope, then move that volume into the comparable share.

Does this tool pick which supplier to use?

No. It sizes price exposure only. Reliability, lead time, quality history and switching cost belong in the decision alongside this number.

Contract Manufacturing, Job Shop Quoting & Make-to-Order calculator

Supplier Quote Comparison Calculator

Check whether a lower supplier quote is worth switching for. Enter the per-unit gap, the annual quantity it covers, the comparable scope share and your confidence that the price holds.

What this calculator does

Turn the price gap between two supplier quotes into the comparable annual dollar impact after scope and price hold risk.

Formula used

Gross quote impact = price gap per unit × annual quantity
Comparable impact = gross × comparable scope share × price hold confidence
Impact outside scope = gross × (1 − comparable scope share)
Impact at risk = gross × comparable scope share × (1 − price hold confidence)

Inputs explained

Price Gap per Unit: Higher quote minus the lower one, per unit.
Annual Buy Quantity: Units a year affected by moving volume to the other quote.
Comparable Scope Share: Share of the volume where both quotes cover the same scope.
Price Hold Confidence: How sure you are the quoted price holds all year.

How to use the result

Best suited to weighing two quotes for a bought-out part, checking a cheaper quote for the same scope, briefing purchasing on price hold exposure.
Switching cost, freight and quality history sit outside this comparison. Confidence below 100% flags exposure but does not price it as an expected loss.

Current U.S. benchmarks

The U.S. prime lending rate is 7.00% (Federal Reserve via FRED, 2026-10-02). Payback and financing math should start from today's rate, not a remembered one.

Common questions

What makes two supplier quotes truly like-for-like? The same part revision, tolerances, finish, packaging, freight terms and annual volume. If one quote excludes a finishing step or assumes a larger quantity, that share of the gap sits outside comparable scope.
Why is confidence entered separately from the price gap? A quoted price can move with material indexes, currency or volume before the year ends. Confidence discounts the comparable gap so a firm quote and a verbal indication do not look equally bankable.
Should the impact outside comparable scope be ignored? No. It is the part of the gap you cannot compare fairly yet. Ask the supplier to price the missing scope, then move that volume into the comparable share.
Does this tool pick which supplier to use? No. It sizes price exposure only. Reliability, lead time, quality history and switching cost belong in the decision alongside this number.

Last reviewed 2026-10-01.