Purchase skill | 23 quotation analysis methods that you will never imagine

By justchinait
October 19, 2020

1. Prevent suppliers from quoting in small units of measurement, thereby reducing your sensitivity to prices.

2. The exact number of decimal places on the quotation should be determined based on the purchase quantity.

3. When analyzing and reviewing quotations, try to use your most commonly used or most familiar currency unit to analyze. (If the renminbi appreciates, what currency should we use for quotation? Use RMB; if the renminbi depreciates, what currency should we use for quotation? Local currency)

4. From the perspective of the quotation unit and method, we should try our best to use the most beneficial way to quote.

5. Special attention should be paid to the quotation strategy and method of seperating the quoted price. (The so-called gather parts into a whole means that there is a decimal point in the quotation of each part of the split. The supplier adds a little more in this item, and a little more in that place, the overall price will be higher.)

6. Quotation should be based on the cost structure of the purchaser. (When purchasing large quantities of products, the format of the quotation should be done in accordance with the requirements of the purchaser, that is, the supplier is required to quote according to our unified quotation method and quotation format. This is very important. This will help you analyze the supplier Quotation and cost.)

7. Pay special attention to when the supplier explains the quotation, he will try to improve your understanding of the value, and let you accept his price naturally.

8. Buyers should also be good at poor mouthing. If you always put on a wealthy appearance in front of suppliers, it will definitely be difficult to get more favorable prices.

9. When you need a supplier’s quotation, you must learn to hide your purchasing purpose and grasp the purchasing needs. If you tell the supplier your needs in advance, and then ask the supplier for a quote, his quote may be outrageous. In other words, it is difficult for you to cut the price you want.

10. It is necessary to analyze the source of the supplier’s raw materials and improve the cost impact of abnormal factors in the procurement cost model. This helps us analyze the true cost of the supplier.

11. Analyze whether there are any pitfalls in the supplier’s recommendations. The supplier’s advice is valuable, but it may contain conspiracy against us. We must identify the supplier’s “good intentions”.

12. The quotation specifies the brand of the raw material supplier, and the replacement should be certified by the buyer. In this way, it is possible to prevent suppliers from “shoddy”, but also to control costs and ensure quality.

13. For raw materials whose prices vary greatly, suppliers often take the opportunity to increase prices.

14. Suppliers usually quote low prices for the parts that are most familiar to the buyer or the most transparent part of the market, so as to gain the buyer’s trust in the supplier’s quotation; and quote high prices for the most unfamiliar part of the purchase or the part that is not transparent in the market.

16. Pay attention to the flexible items in the quotation. Supplier quotations often hide many items for flexible calculation of costs. With this quotation strategy, suppliers can often successfully obtain substantial profits in the follow-up. If you do not pay attention to the purchase, you will have to pay unnecessary costs. It is best to reduce the cost of flexible calculation projects.

17. Quotation analysis and cost analysis should be combined with the supplier’s factory to analyze. Many procurement managers think that going to the supplier’s factory is a waste of time and there are travel costs. The most important thing is that when the buyer goes to the supplier’s factory, it will be easier to be “got” by the supplier. This view makes many purchasers of the company unable to be more professional, because they have no idea how the products they purchase are produced, let alone the cost of the products provided by the suppliers.

18. Pay special attention to the problem of suppliers cutting corners. How much you give the supplier, he can make the goods you want, relying on cutting corners. Low price does not mean low cost. Quality and quantity are very important, so we should constantly track and analyze changes in the quality and quantity of purchased products.

19. Usually 20% of the items in the quotation often account for 80% of the cost, 30% of the items account for 15% of the cost, and 50% of the items only account for 5% of the cost. Therefore, we must focus on the analysis of the projects that account for the largest proportion of total costs.

20. It should be noted that the supplier uses the psychological induction quotation method, which is manifested in two forms: the first form is the suppliers will make the purchaser feel that the quotation is calculated; the second form is that the supplier quote a price lower than the purchaser’s psychological price, so buyers are easier to trust and accept.

21. The so-called proof provided by the supplier is likely to be second-hand data and information. Don’t stop analyzing the supplier’s cost because of the proof, unless you are really sure that there is no problem.

22. The economics of the mold should be evaluated.

23. The compatibility of the mold opened by the supplier with other suppliers should be evaluated.



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