Buying from several vendors only saves money if you can compare like with like. Here is a practical way to do it.
Step 1: Gather three months of invoices
Three months shows real prices, not a one-time special. Include every vendor you buy from, including produce, dairy, dry goods, and beverage.
Step 2: Standardize item names
"Chicken breast boneless 40 lb" and "Boneless chicken breast, case" are the same product. Pick one naming pattern (for example, noun first: "Chicken Breast Boneless") and use it for every vendor. Consistent names make comparisons possible.
Step 3: Check the unit of measure
A case of 6 cans and a single 10 lb bag are not comparable as sticker prices. Convert every price to a common unit, such as price per pound, per each, or per ounce. Watch for these common traps:
- Pack sizes listed differently by two vendors
- "Each" and "case" used for the same product
- Weight versus count (for example, 2 lb versus 32 oz)
Step 4: Compare the normalized unit price
Once every price is in the same unit, rank the vendors for each item. The lowest unit price is your best buy for that product, provided quality and delivery are acceptable.
Step 5: Act on the results
- Move regular orders to the lowest-cost vendor for each item.
- Keep a second vendor for backup on key products.
- Review prices monthly, since vendor prices change.
Step 6: Track the savings
Record what you bought before and after the change. Over time this shows whether vendor comparison is paying off.
NxtEdge's Vendor Price Comparison does Steps 2 through 4 automatically from your invoices. Ask us how it works for your operation at 561-713-2666.