'Always get three quotes.' It's the most common piece of purchasing advice for small businesses. And it's not bad advice, exactly. Getting three quotes is better than getting one. But it's also an oversimplification that often leads to a false sense of confidence.
The problem isn't the number. The problem is what people do — and don't do — with the quotes once they have them.
Three quotes doesn't mean three comparable quotes
When most people get three quotes, they contact three suppliers, ask for a price, and compare the numbers. But unless each supplier was given the same brief and asked the same questions, the quotes aren't truly comparable.
One supplier includes delivery and installation. Another quotes the product only and charges separately for everything else. A third offers a lower unit price but requires a minimum order quantity that's twice what you need. Comparing the headline numbers on these three quotes tells you almost nothing useful.
The first step to making quotes genuinely comparable is giving every supplier the same information. Describe exactly what you need, in the same detail, to everyone. Then ask the same follow-up questions: what's included, what's excluded, what are the payment terms, and what's the delivery timeline.
Three might not be enough
For straightforward commodity purchases, three quotes is often fine. If you're buying something standard — printer paper, basic office furniture, a well-defined material — three quotes from reputable suppliers will give you a reasonable view of the market.
But for anything complex — professional services, custom manufacturing, construction work, IT projects — three quotes might not capture the real range of options. Different suppliers approach complex projects differently, and their pricing reflects not just cost but scope, methodology, and risk tolerance. With only three data points, you might miss a supplier who could deliver the same outcome at half the price, or one who charges slightly more but includes elements the others consider extras.
For significant purchases, aim for five to seven quotes when practical. The incremental effort is small compared to the savings from having a broader view of what's available.
Price comparison is not evaluation
Even with perfectly comparable quotes, choosing purely on price is a mistake that most small businesses have made at least once. The cheapest supplier frequently ends up being the most expensive when you factor in late delivery, quality issues, poor communication, or hidden costs that emerge after you've committed.
Proper evaluation means looking at the full picture: price, quality indicators, delivery reliability, payment terms, support, and the supplier's track record. This doesn't require a sophisticated scoring system. It just requires asking the right questions upfront and considering the answers alongside the price.
Make comparison easy, not more work
RFXapp takes the tedious parts off your plate. Describe what you need, and AI finds relevant suppliers, sends your requirements to all of them, and compares the quotes that come back — including price, terms, and everything else that matters. You make the final call.
Get Started FreeThe approach that actually works
Instead of 'get three quotes and pick the cheapest', a better approach looks like this:
Describe what you need clearly and in detail before contacting anyone. This forces you to think about what matters beyond price and ensures every supplier works from the same information.
Contact more suppliers than you think you need. For important purchases, five to seven is a good range. For routine purchases, three is fine as long as they're all working from the same brief.
Ask every supplier the same questions. Include questions about what's included in the price, delivery terms, payment terms, and anything else that matters for your specific situation.
Compare everything, not just the number. Look at total cost of ownership, not unit price. Consider what happens when something goes wrong. Factor in how easy the supplier is to communicate with.
Don't be afraid to go back with questions. If a supplier's quote looks good but something is unclear, ask. A good supplier will appreciate the thoroughness. A bad one will be evasive, which tells you something important.
The point isn't to turn every purchase into a procurement project. It's to have a simple, repeatable process that ensures you're making informed decisions rather than picking the cheapest option and hoping for the best.