Lesson 3.1 · 7 minutes

Check sourcing costs

Request comparable quotes, inspect a sample and list costs before buying stock.

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Before you start

What remains after costs

Example: Alex models a $40.00 sale, an $8.00 bag and $6.00 shipping. Which other costs could change the decision?

A price gap leaves costs unanswered.

Step 1 · Read

Quote. Compare the same specification and destination so a cheaper quote means something.
Sample. A sample lets you inspect the actual item before committing to more stock.
Costs. List what is included and what remains unknown. An omitted expense can change the result.

Step 2 · View

Quote: Ask about the same order
Send each supplier the same size, material, quantity and delivery destination. Different specifications produce misleading comparisons.
Sample: Inspect the actual product
Check the closure, seams and usable size. A low quote has little value if the bag fails the intended use.
Count: Record income and expenses
Separate product and shipping costs from fees, returns and other expenses. An incomplete estimate needs an explicit next check.

Step 3 · Match

Unit cost

The amount paid for each product before other selling expenses.

Shipping

The cost of moving the order along a stated route.

Balance

What remains after the costs you have entered, with omissions still to check.

Use the same cost labels when comparing a supplier quote with your estimate.

Step 4 · Try

Example amounts are prefilled. Change shipping to see how sensitive the estimate is.

Step 5 · Choose

My supplier quote leaves important details unclear.

Clarify the specification and route before paying. You delay the trial, but reduce the chance of comparing unlike orders.

I have comparable quotes and an inspected sample.

Work on the sales channel and a small demand test. The numbers are clearer, but they still do not prove that buyers will order.

Step 6 · Next

Read about comparable quotes, samples and expenses that a retail-to-supplier price gap can leave out.

Keep your next question in the workspace.