Electrical Supplier Quote Normalizer

Normalize two supplier quotes

How quote normalization works

Quote normalization separates the quoted packaging convention from the economic comparison. First, the tool determines how many quoted packages are needed to satisfy the comparison quantity. It then applies the supplier discount to the merchandise value, adds freight and applies the entered tax or duty percentage to that subtotal.

Core method

Net goods value = Package count × Quoted package price × (1 − discount)

Delivered basis = (Net goods value + freight) × (1 + tax)

Effective unit price = Delivered basis ÷ comparison quantity

Why this matters

A supplier with the lowest catalog unit price can still be more expensive after smaller package sizes, minimum buying quantities, freight or tax are included. Normalization makes the commercial decision easier to audit.

Important limitation

This page compares the numerical commercial assumptions you enter. It does not verify material quality, specification compliance, warranty, payment terms, Incoterms, delivery performance or whether the quoted item is technically equivalent.

FAQs

Why allow exact package equivalents?

Some quotations are priced per measured unit rather than a physical package. Exact mode can also help with preliminary cost comparison when the supplier has not yet enforced packaging increments.

Should freight be included?

Yes when the purpose is to compare delivered economics. Enter zero when freight is already embedded in the quoted price.

Does tax always apply to freight?

Not necessarily. The calculator uses one simplified tax assumption. Actual tax treatment depends on the transaction and jurisdiction.

Can I compare more than two suppliers?

Yes. Run the same comparison basis for each supplier and place the resulting effective unit prices in a procurement comparison sheet.

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