Unit price versus landed cost: a buyer comparison

Unit price answers only one part of a purchasing question. To compare suppliers, choose the same destination and order quantity, then build a cost bridge for each offer. The bridge is a decision worksheet, not a replacement for a customs or tax calculation.

Build the bridge

Start with goods at the quoted quantity. Add setup or tooling, packaging, inland and international freight, insurance if applicable, import charges, handling, and incoming verification that the buyer will bear. Record who supplied each estimate and its date. If a line is unknown, display “unknown”; putting zero there makes the total look more certain than it is.

Compare the same outcome

Check the delivery term and named place before adding transport costs. Two quotes may transfer responsibility at different points. Divide one-time charges by the actual planned quantity, then show both per-unit and total cash outlay. Recalculate when quantity or destination changes. The cheapest factory-gate price may still be best, but it should win on a complete comparison.

Worked cost bridge

Illustrative comparison: buy 500 units in USD. In the quote comparison tool, enter Supplier A at 8.00 per unit, 200 setup, 100 packaging, and 350 freight. Enter Supplier B at 8.60, zero setup, 100 packaging, and 150 freight only if each charge is confirmed in writing. The tool shows entered cost per unit; keep duty, tax, and local delivery in a separate worksheet. Common error: calling A cheaper from 8.00 versus 8.60 before adding the different charges.

Source context: ASQ — Supplier Quality supports this limited point: Supplier quality assessment can consider total cost, inventory needs, and incoming verification. The buyer procedure above is Suppliers Help editorial guidance. Source checked 2026-09-27.