Two quotes for the same part can look very different. The unit price is only one line. This guide explains the other terms that affect your real cost.
A sample quote. 1 Part number. 2 Quantity. 3 Unit price. 4 Standard pack quantity (SPQ). 5 Lead time. 6 Packaging. 7 Date code. 8 Cancellation terms (NCNR: non-cancellable, non-returnable). 9 Validity. 10 Shipping terms. 11 Payment terms. Example data.
Unit price and price breaks
Prices often drop at higher quantities. A quote may list several price breaks. Check the price at the quantity you will actually order.
The unit price falls at each price break. The orange line marks one full reel (SPQ). Example prices.
MOQ and SPQ
| Term | Meaning |
|---|---|
| MOQ | Minimum order quantity. The smallest amount the supplier will sell. |
| SPQ | Standard pack quantity. The number of parts in one full reel, tray or tube. |
Ordering in full packs is often cheaper. It also avoids cut tape on parts your machines feed from reels.
Lead time
Lead time is how long until the parts ship. Ask whether it counts from your order or from payment.
A short lead time usually means the parts are on hand. A long one can mean they will be made to order.
Packaging
Check that the packaging fits your line. Assembly machines usually need tape and reel. Cut tape suits prototypes and small runs.
Date code and condition
A clear quote states the date code. It also says whether the parts are new and in original packaging. If these are missing, ask before you order.
Validity, shipping and payment
- Validity: how long the price holds. Component prices can change quickly.
- Shipping terms: who pays freight and import duties. Incoterms such as EXW or DAP set this out.
- Payment terms: when payment is due, and how.
- Cancellation: some orders cannot be cancelled or returned. Quotes often mark these NCNR.
Compare the total cost
Add freight, duties and bank fees to the unit price. A low price with a long lead time may cost more if your line stops.
Quote A has the lower unit price but costs more in total. 1 Parts. 2 Freight. 3 Duties and taxes. 4 Bank fees. The hourglass shows lead time. Example figures.
Before you ask for quotes, see our guide to preparing your BOM.
Questions about our quote?
If any line in our quote is unclear, reply to the quote email. We will explain it before you order.
