The most expensive quote on paper is often the cheapest once it lands. Here's why.
Ask a new buyer what a product costs and they'll quote the unit price. Ask an experienced one and they'll ask where it's shipping to first. That instinct is the whole game.
The quote is the smallest number
Freight, duties, insurance, port fees, brokerage and defects routinely add 20–40% to the factory price — and they vary wildly by supplier and origin. The cheapest quote on paper is frequently the most expensive on your shelf.
A worked example
Supplier A quotes $0.90/unit FOB Shenzhen. Supplier B quotes $1.00/unit FOB a port with cheaper freight to your market and a lower duty rate. Once you model freight and duty, B lands cheaper per good unit — and the ranking flips.
Make it a habit
- Never compare finalists on unit price alone.
- Build a landed-cost model for every serious quote.
- Include a realistic defect and delay allowance.
- Let landed cost — not the headline — pick the winner.
Sourcely computes landed cost for every quote automatically, so the comparison you see already reflects reality.
Frequently asked questions
- Why does landed cost matter more than unit price?
- Because freight, duties, insurance and fees can add 20–40% to the unit price and vary by supplier and origin. Comparing unit prices alone routinely picks the wrong supplier; landed cost reflects what you actually pay.
Ready to source smarter?