two quotes is better than one

omnivl

New member
Joined
Jan 5, 2018
Messages
1
Hi
We had a purchasing policy that required staff to obtain:

  • one quote for values between $0 and $5,000
  • two quotes for values between $5,000 and $10,000

This has recently changed to:

  • one quote for values between $0 and $2,000
  • two quotes for values between $2,000 and $10,000

It is hoped that by lowering the threshold for two quotes that it would encourage more competition and achieve a better financial outcome.

For example:
first quote at $3,000
second quote at $2,500

Which would efficiently mean by seeking the extra quote it has saved the organisation $500 in this instance.

Is there a formula that works in this scenario?
 
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