Check a supplier price increase for double counting
Start from the original quotation and ask the supplier to show which cost changes are already included in the revised base price. Add only adjustments excluded from that base, using matching quantities, dates, currencies and delivery scope. Request a reconciliation through Cambridge China Bridge.
Keep the original quotation as the baseline
Save the original quotation, its specification, quantity, packaging, payment currency and delivery term with the named place. Compare the revised offer against that exact scope. Record specification or quantity changes separately so they cannot masquerade as material inflation. Use the quote comparison guide to resolve missing scope.
Ask what the supplier means by 'revised base price': the original price with selected changes, or a replacement price incorporating current costs? Do not assume that a charge shown separately is excluded from the base. Request an explicit included-or-excluded statement for each adjustment.
Build a reconciliation that reaches the requested total
Use a worksheet with the original amount, supported change, amount already absorbed into the revised base, remaining separate adjustment and supporting document. Work in the quotation currency first. Convert shipment charges to a per-unit amount using the same order quantity before combining them with unit prices.
Reconcile the original base plus the changes absorbed into it to the revised base. Then add only the remaining separate adjustments to reach the supplier's requested total. Alternatively, start with the original base and apply all agreed net changes. These routes should reach the same total; an unexplained difference stays unresolved.
| Cost line | Ask for | Possible overlap |
|---|---|---|
| Material | Original and revised input cost, grade and consumption per finished unit | Updated material cost in the base plus a surcharge for the same movement |
| Energy | Affected process, energy allocation and comparison period | Energy already included in a purchased material or processing charge |
| Freight | Original and revised shipment scope, packed dimensions and quotation | A replacement freight amount plus the full freight increase |
| Currency | Original and revised rate, conversion direction and affected cost portion | A base already repriced for currency plus a separate currency adjustment |
Challenge the affected cost, not the whole price
For material, ask for comparable purchase quotations or redacted invoices and the relevant BOM consumption, including the agreed treatment of scrap. A rise in an input price does not explain the same proportional rise in the finished product price. For energy, ask which production processes changed and whether the material supplier's increase already includes that energy movement.
For currency, identify the cost portion exposed to the claimed movement and the dates and rates used. Ask whether the revised base was already converted at the revised rate. A foreign-currency invoice becoming more expensive in sterling does not itself establish an additional supplier cost. Keep your payment conversion separate from the supplier's repricing explanation.
Reconcile freight before rebuilding landed cost
Check whether freight was included in the original delivery scope, removed from the revised base or replaced with a new shipment quotation. Compare the same route, service, packing and named destination. If the new freight quotation replaces the old amount, remove the old amount before adding the replacement. Use the freight invoice checklist for charge-by-charge checks.
After agreeing the commercial total, rebuild the landed cost separately. HMRC's transaction-value guidance says required additions are added only where they are not already included in the price. Send the reconciled invoice and delivery breakdown to your customs agent so an embedded cost is not added again. For resale profit arrangements, see supplier profit sharing and customs value.
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Send a specific clarification request
Send: 'Please reconcile the proposed total to the original quotation for the unchanged specification and quantity. For material, energy, freight and currency, show the original assumption, revised assumption, calculation basis, supporting document and amount already included in the revised base. Identify all remaining separate charges and credits, their effective dates and which orders they cover.'
Ask for a corrected quotation that states the final unit price, shipment charges, inclusions, exclusions and validity. Record any agreed review trigger and how falling costs will be treated. If evidence is incomplete, label the affected adjustment unverified and propose a documented resolution before accepting the revision. Use the factory negotiation guide for the wider discussion.
Frequently asked questions
How do I spot a duplicated material surcharge?
Ask whether the revised base already uses the revised material cost. Reconcile that embedded change with the separate surcharge against the original material assumption.
Can energy and material increases overlap?
Yes. A purchased material price may already reflect the material producer's energy increase. Ask which separate factory process the energy surcharge covers.
Should a currency increase apply to the whole price?
Ask which cost portion is exposed, which rates apply and whether the revised base already reflects them. Do not apply a blanket adjustment without a supported calculation.
What if the supplier will not share its costs?
Request redacted documents or an agreed input benchmark and calculation basis. You can assess a commercial offer without full accounts, but an unsupported breakdown does not prove the increase.