Why isn't our chemical quote comparable to a competitor quote?
Summary
A "not comparable" verdict on a chemical quote usually comes from a different price unit, concentration basis, pack size, or tax and Incoterms treatment. That holds when both suppliers offer the same grade for the same use. If the grades or specifications differ, settle the product question first, then check each basis line by line.
Incoterms 2020, in force since 1 January 2020, has 11 rules, and each rule lists all the costs it allocates at article A9/B9 (ICC, 2020).
Under Incoterms 2020, CIF keeps Institute Cargo Clauses (C) as the default insurance cover, while CIP requires cover compliant with Institute Cargo Clauses (A) (ICC, 2020).
UN/ECE Recommendation 20, Revision 11e, keeps separate unit codes for a kilogram (KGM), a kilogram of sodium hydroxide (KSH) and a kilogram of a named substance that is 90 % dry (KSD) (UNECE Rec. 20 Rev. 11e, Peppol 2026).
A UK VAT invoice shows, for each line, the VAT rate and the amount payable excluding VAT, plus the unit price (HMRC VAT Notice 700/21, 2024).
This answer covers price comparisons between two offers for the same chemical grade, quoted to a business customer. It does not cover a cheaper product of a different grade, specification or approval status, and it does not set prices or choose an Incoterms rule. Tax rules vary by country; check the rules where the sale is taxed.
What does a customer mean when two chemical quotes are not comparable?
A customer who calls two chemical quotes not comparable means the numbers on the two pages rest on different bases, so the lower figure is not yet the lower cost. One procurement glossary defines quote comparison as normalizing supplier quotes, restating every quote "at the same volumes, a single currency rate, and one Incoterms basis" before deciding which offer is cheaper (LightSource, n.d.).
For a chemical, the bases that most often differ are the ones a buyer cannot see from the unit price alone: whether the price is per kilogram as supplied or per kilogram of active content, whether the pack size forces a larger order than requested, whether tax is in or out, and which Incoterms rule and named place the price is delivered to. The same glossary calls the unit price at the bottom of each quote "the least comparable number on the page" (LightSource, n.d.).
The verdict is rarely a claim that your price is wrong. More often the buyer could not restate your quote and the competitor's on one basis within the time they had, and set yours aside. The fix is to make that restatement possible from your quote alone: every number carries its basis in the same line.
What are the most likely causes of a non-comparable chemical quote?
The most likely causes of a non-comparable chemical quote are, in rough order of how often they hide a price gap: the price unit, the supply form or active-content basis, the pack size against the requested quantity, tax and Incoterms treatment, and the validity date and documents. This ranking reflects common quoting practice, not a published survey.
Price unit
Per kilogram, per liter, per drum and per metric ton are different units. Per liter prices move with density, and density changes with temperature, so a per-liter price needs the density and its reference temperature beside it.
Supply form or active-content basis
Chemicals sold as solutions can be priced per kilogram as supplied or per kilogram of the active substance. UN/ECE Recommendation 20 has a separate unit code for a kilogram of sodium hydroxide, distinct from a plain kilogram (UNECE Rec. 20 Rev. 11e, Peppol 2026).
Pack size against the requested quantity
A drum or IBC size that does not divide the requested quantity changes the order total, not the unit price.
Tax and Incoterms treatment
A tax-included price and a tax-excluded price differ by the full tax rate. Two Incoterms rules split freight, insurance and unloading differently (ICC, 2020).
Validity date and documents
An expired price, or a quote that omits the certificate of analysis or safety data sheet the customer requires, is not a like-for-like offer.
How can you tell which basis differs between two chemical quotes?
You can tell which basis differs between two chemical quotes by reading both quotes line by line against these checks: unit, concentration, pack, tax and delivery term, currency and payment terms, then validity. Start with the unit and concentration checks, because a concentration mismatch alone doubles or halves the apparent price at a 50 % mass fraction (illustrative), while tax and delivery terms add a share on top. The table below decides which basis makes the two quotes differ.
Check | What you see in the two quotes | Points to |
|---|---|---|
Price unit | One quote per kg, the other per L, per drum or per metric ton | Unit basis; convert with the stated density and its reference temperature |
Concentration | One price per kg of a 50 % solution, the other per kg of active content (illustrative) | Active-content basis; the per-kg-active figure is twice the as-supplied figure for a 50 % mass fraction (illustrative) |
Pack size | Requested 800 kg, quoted in 1,000 kg IBCs (illustrative) | Order total differs from requested quantity times unit price |
Tax | One quote states "excl. VAT" or a rate, the other states nothing | Tax treatment; a UK VAT invoice, for example, shows the net amount and the VAT rate per line (HMRC VAT Notice 700/21, 2024) |
Delivery term | EXW plant against DAP customer site, or CIF against CIP (ICC, 2020) | Incoterms rule and named place; freight, insurance and unloading sit with different parties |
Currency and payment terms | One quote in EUR, the other in USD, or 30 days against 90 days (illustrative) | Restate at one exchange rate, and price the payment-term difference (LightSource, n.d.) |
Validity | One date passed, or no date | Price may no longer stand |
The concentration row is the one buyers miss most: a 50 % solution priced per kilogram as supplied looks half the price of the same product priced per kilogram of active content, and the two offers can be identical (illustrative). The delivery-term row comes next: an EXW price excludes freight, duty and export packaging that a DDP price already includes (LightSource, n.d.), so compare the two only after adding what the EXW buyer will pay. Work down the table in order and stop at the first row that explains the gap.
How do you restate a chemical quote so every number shows its basis?
You restate a chemical quote so every number shows its basis by writing one line per basis under the price, so a buyer can convert your figure to any competitor's basis without asking you. The steps follow the diagnostic table.
Unit. State the price unit and, for a per-liter price, the density in kg/L and its reference temperature in °C from your technical data sheet.
Concentration. State the mass fraction of the active substance and whether the price is per kilogram as supplied or per kilogram of active content. NIST prefers the form "the mass fraction is 10 %" and says to avoid writing "% (by weight)" (NIST SP 811, 2008).
Pack. State the pack size, the number of packs and the gap between the requested and the quoted quantity.
Tax. State "excluding" or "including" tax, with the rate if included, for the country where the sale is taxed. State the currency and the payment terms.
Delivery. State the Incoterms 2020 rule and the named place, and, under CIF or CIP, the level of insurance cover (ICC, 2020).
Validity and documents. State the validity date and the documents shipped.
As an illustrative restated line: "Per kg as supplied, mass fraction 50 %, equal to twice this figure per kg of active content; 1 IBC of 1,000 kg against 800 kg requested; excluding VAT; DAP customer site, Incoterms 2020; valid to the stated date; CoA and SDS included."
How do you keep chemical quotes comparable on the next request?
You keep chemical quotes comparable on the next request by fixing the basis with the customer before you price, and by keeping a record of where each number on the quote came from. Fix these five points at the request stage, while the customer still has the competitor quote in front of them:
The unit they compare on: per kg, per L or per metric ton.
The concentration basis: as supplied or active content, and at what mass fraction.
The quantity and acceptable pack sizes.
The tax treatment and the Incoterms 2020 rule and named place they use internally.
The documents they need with the offer.
Record, for each value on the quote, its source and the date it was valid: the price list or prior quote the price came from, the technical data sheet for density and concentration, the freight quotation for delivery cost. A value with no source or a stale date goes back to the person who owns it, not onto the quote as a guess.
When the next competitor quote arrives, the buyer can restate both offers on the agreed basis. If your number still looks higher after that, the gap is a real price difference and you can discuss it as one.
When should you ask the customer how the competitor quote was built?
You should ask the customer how the competitor quote was built when your restated quote still differs by more than the basis checks explain, or when the competitor quote omits a basis you cannot infer. Ask about the basis, not the competitor's price: which unit, which concentration, which pack, tax in or out, and which Incoterms rule and named place.
A buyer who will not share the competitor's number may still tell you the basis, because the buyer needs that basis to defend the comparison internally. If they confirm the same basis and the gap remains, look next at grade, specification and documents. A lower-priced offer for a grade that lacks a customer approval is a different product, and the comparison belongs to the technical team rather than to pricing.
Lubinpla's quote drafting attaches to every value on the quote the source it came from and the date that source holds, and leaves the Incoterms choice and the price to you.
Keep the customer's answer with the quote record, so the next quote for that customer starts from the basis they already use.
Frequently asked questions
Is a lower price per liter always cheaper than a price per kilogram?
No. A price per liter and a price per kilogram compare only after conversion with the product's density at a stated reference temperature, taken from the technical data sheet. A dense product priced per liter can cost more per kilogram than the per-kilogram quote beside it.
Should a chemical quote include the Incoterms year?
Yes, name the edition with the rule and the named place, such as DAP and the customer site under Incoterms 2020. ICC describes Incoterms 2020 as its most recent version, in force since 1 January 2020 (ICC, 2020).
Does the pack size change the unit price?
The pack size usually changes the order total, not the unit price. If the customer requested 800 kg and your smallest pack is a 1,000 kg IBC, state both quantities so the buyer sees why your total is higher (illustrative).
What if the competitor quote shows no basis at all?
Ask the customer which basis they assume for it, and restate your quote on that basis as an alternative line. Do not guess the competitor's basis in writing.