Comparing suppliers on margin is crucial for your profit. Many entrepreneurs choose purely on purchase price, but forget that quality, cutting loss and reliability determine your actual costs. In this article you'll learn a system to consistently track which supplier delivers the best margin for which product.
Why purchase price alone isn't enough
The cheapest supplier doesn't always deliver the best margin. Here are the hidden costs you need to factor in:
- Cutting loss: €12/kg salmon with 50% loss = €24/kg fillet
- Quality: Poor vegetables = more waste = higher actual costs
- Reliability: Late deliveries = stress + potentially expensive emergency purchases
- Packaging: Portion packaging vs. bulk makes a difference
💡 Example:
You buy steak from two suppliers:
- Supplier A: €28/kg, 5% waste due to poor quality
- Supplier B: €32/kg, 0% waste due to perfect quality
Actual cost A: €28 / 0.95 = €29.47/kg
Actual cost B: €32/kg
Supplier B is only €2.53/kg more expensive for much better quality.
Setting up the comparison system
Create an overview per product category with these columns:
- Product: For example "Beef tenderloin, 200g portions"
- Supplier: Name and contact details
- Purchase price: Per kg or per unit
- Quality score: 1-10 (consistency, freshness, cutting loss)
- Reliability score: 1-10 (on-time deliveries, correct quantities)
- Actual cost price: Purchase price adjusted for waste
- Total score: Combination of price, quality and reliability
Including cutting loss and waste
For products with cutting loss you need to calculate the actual price per kilo:
💡 Example calculation:
Whole chicken from supplier C:
- Purchase price: €4.50/kg
- Whole chicken weight: 1.8 kg = €8.10
- Usable meat after butchering: 1.2 kg
- Cutting loss: 33%
Actual price chicken fillet: €8.10 / 1.2 kg = €6.75/kg
⚠️ Note:
Measure cutting loss again with each new supplier. Quality and cutting method can vary significantly between suppliers.
Weekly evaluation routine
Schedule 30 minutes each week to evaluate your suppliers:
- Monday: Check which deliveries were late
- Wednesday: Evaluate quality of received products
- Friday: Calculate actual costs of new products
- Sunday: Update your comparison table
Note any special circumstances such as seasonal fluctuations, special offers, or quality issues. This data helps you make better purchasing decisions.
Digital tools for supplier management
An Excel sheet works, but quickly becomes unwieldy. Better options:
- KitchenNmbrs: Tracks supplier information per ingredient
- Google Sheets: Accessible from phone, automatic backup
- Notion: Database function for detailed supplier profiles
💡 Example comparison:
Tomatoes for pizza (per 10kg crate):
- Supplier A: €18, quality 6/10, reliability 9/10
- Supplier B: €22, quality 9/10, reliability 8/10
- Supplier C: €16, quality 4/10, reliability 6/10
Winner: Supplier B - €4 extra per crate for much better quality.
Tracking seasonal fluctuations
Prices and quality vary by season. Keep track of:
- Winter months: Which supplier has the best greenhouse vegetables?
- Summer months: Who delivers fresh, local products?
- Holidays: Which supplier stays reliable during busy periods?
Make notes per month so next year you know exactly where to go for specific periods.
Setting up supplier comparison (step by step)
Create a comparison table
Put all suppliers per product category in an overview. Note purchase price, quality score (1-10) and reliability score (1-10). Update this weekly with new experiences.
Measure cutting loss and waste
Test with each supplier how much usable product you end up with. Calculate the actual price per kilo by dividing purchase price by yield percentage. This gives you the real comparison.
Evaluate weekly and adjust
Schedule 30 minutes each week to rate suppliers on quality, punctuality and price. Switch suppliers if the total score consistently becomes worse than alternatives.
✨ Pro tip
Always test new suppliers with a small order before buying large quantities. Measure the cutting loss and evaluate the quality over a week.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
How often should I compare suppliers?
At least monthly for your main products, and weekly for products you're having issues with. Check seasonal products with every new delivery for quality and price.
What if my cheapest supplier is unreliable?
Factor in the costs of stress, emergency purchases and customer dissatisfaction. A supplier that's 10% more expensive but always delivers on time is often cheaper than an unreliable budget option.
Do I need to measure cutting loss with every delivery?
No, but do it with every new supplier and if you suspect quality is declining. Measure at least once per quarter with your regular suppliers to spot trends.
Can I negotiate with suppliers over price?
Yes, especially if you consistently buy large quantities. Show your comparison table and ask if they can match better prices. Loyalty is often rewarded.
How do I track seasonal fluctuations?
Note each month which supplier has the best price-quality ratio. Make notes about holidays and busy periods. Next year you'll know exactly where to go.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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