Free supplier quote comparison template (landed cost)
The cheapest unit price is not always the cheapest supplier once freight, insurance, duty and other costs are added. This sheet puts up to four quotes side by side, converts them to your currency and works out the landed cost per unit and for the whole order, then ranks the suppliers, with MOQ, lead time, payment terms and sample quality next to the numbers.
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What the template covers
- Product and specification, your currency and the order quantity
- Up to four suppliers with country, Incoterms rule and named place, and currency
- Unit price converted at the exchange rate you enter
- Freight and other costs to your door per unit, when they are not in the price
- Insurance as a percentage, and duty at your rate on a CIF or FOB base
- Landed cost per unit and for the order, and the rank of each supplier, by formula
- MOQ, lead time, payment terms, validity of the offer, sample quality and certificates
- Notes and the supplier chosen, with the reason
Sources
Guides on this topic
Why compare landed cost
Suppliers quote on different Incoterms rules: one price may be EXW at the factory, another FOB at the port and a third CIF at your port. To compare them, add to each price the costs you still have to pay to get the goods to your door: freight and local charges, insurance, import duty and taxes that are a real cost to you, and other costs such as testing, inspection and bank charges. The landed cost per unit is the fair comparison.
Duty on a CIF or FOB value
Countries do not all calculate duty on the same value. The European Union and many others include the freight and insurance to the border (a CIF value), while the United States and a few others exclude international freight and insurance (a FOB value). The sheet lets you choose the base for each quote, so check which one applies in your country and use the duty rate for the product's HS code.
Beyond price
A lower landed cost can come with a higher MOQ, a longer lead time, less favourable payment terms or weaker samples. Score the samples, check that the required certificates and tests are available and note the offer's validity date before you decide, then confirm the chosen offer in a purchase order.
Common questions
What is landed cost?
The total cost of a product delivered to your door: the purchase price plus freight, insurance, duties, taxes that you cannot recover and other import costs, usually expressed per unit.
How do I compare an EXW quote with a CIF quote?
Add to each quote the costs that are not in its price: for EXW, export clearance, origin charges and freight; for CIF, the destination charges and import costs. Then compare the landed cost per unit.
Is duty calculated on the CIF or the FOB value?
It depends on the importing country: the EU and many others use a CIF value, while the United States uses a value that excludes international freight and insurance. Check the rules of your country.
Does the template rank the suppliers automatically?
Yes. Once prices and costs are entered, the sheet calculates the landed cost per unit and ranks the suppliers from the lowest. Weigh MOQ, lead time, payment terms and sample quality before deciding.
Where do I get the freight cost per unit?
From a forwarder's quote for the shipment divided by the number of units, or from the landed cost calculator on this site for an estimate.
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