To compare chemical quotes fairly, put every quote on the same basis: the same specification and active content, the same pack, the same Incoterm and place, the same payment term and the same validity. Only then is a lower figure really lower.
Quotes that look cheap often differ on one of these points. The difference can easily outweigh the headline gap.
Make the product the same
- Send every supplier one written specification, with each test, method and limit.
- Ask each supplier to confirm it can meet every line, and to list any exceptions.
- For products sold by active content, convert to a 100% active basis. A cheaper product at lower strength may cost more per unit of active ingredient.
- For dyes, compare at the same strength against the same standard.
- Check that the grade is the same: technical, food or another standard.
Make the terms the same
- Ask for the same Incoterm and named place from everyone, such as FOB Mundra.
- Specify the pack: drum type, IBC, bag size, palletising and labelling.
- State the payment terms you expect, since advance terms usually lower a quote.
- Ask for the quote's validity and what can change it.
- Ask for the lead time from order to readiness at port.
- Ask what documents are included, such as COA, SDS and certificate of origin.
Add the costs the quote leaves out
The ex-works or FOB figure is only part of your cost. Build a landed comparison that adds freight, insurance, import duty, testing, inspection and storage. Some origins or plants may face anti-dumping or other trade duties in your market, which can change the ranking. Our article on import duties on Indian chemicals explains how to check.
Add the cost of risk too. A plant with a weak record may need more testing, more inspection and more safety stock.
What drives the gap
When one quote is much lower, find out why. Common reasons are a cheaper raw material route, a lower purity, a different pack, a trader with old stock, or a seller who has not understood the specification. Some reasons are fine. Others become quality problems after delivery.
Feedstock and market movements also change quotes over time, as explained in how crude oil affects chemical prices.
A simple comparison table
Put every quote into one table with the same columns: specification met in full, active content, pack, Incoterm and place, payment terms, validity, lead time and documents included. Add rows for freight, insurance, duty and testing. Then add a row for risk, based on what you know of each plant. The lowest headline quote is often not the lowest landed cost. The table also makes it easy to show colleagues why you chose one supplier over another.
Next step
We gather quotes on one specification and basis, then compare them for you. Real figures come from that sourcing review. Book a free sourcing review.