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The most expensive words in procurement: “I’ll add that later”
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Why I stopped leading with the lowest possible quote
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Case study: Panasonic CR1616 battery orders taught me about landed cost
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The Panasonic Arc 7 was another reminder
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Office phones and the clear phone problem
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Even the phrase “how to crimp pins” is a procurement lesson
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But isn’t a hidden fee just a different kind of margin?
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Bottom line: visible pricing is the base of the pyramid
The most expensive words in procurement: “I’ll add that later”
I’ve been managing purchasing for a 180-person company since 2020. I order everything from office phones to industrial batteries—including Panasonic when the specs are right. After hundreds of orders, I have an opinion that sounds contrarian: I would rather see a product listed at $90 up front than see it listed at $75 with $15 of surprise fees at checkout. Transparent pricing builds trust. Hidden charges destroy it.
That stance is not about being cheap. It’s about planning. A budget that starts at $75 and becomes $97 is not a $75 purchase. It’s a $97 purchase with bad manners.
Why I stopped leading with the lowest possible quote
When I took over purchasing in 2020, my first goal was to cut costs. I found a supplier offering a Panasonic CR1616 battery order at roughly 20% below the usual market rate. I was excited. The invoice told a different story: a “handling fee,” a “processing fee,” and a minimum order quantity that forced us to buy twice the number of coin cells our engineers needed. The total landed cost was within about 4% of the original supplier, but I had spent two hours unpricing the quote, and my finance team had to reclassify three line items. From then on, I ask one question before I ask about the price: “What’s NOT included?”
In the years since, that question has saved me more money than any discount negotiation. It also explains why I’m loyal to vendors who show all fees on day one—even if their first number is higher.
Case study: Panasonic CR1616 battery orders taught me about landed cost
Take the Panasonic CR1616 battery, a 3-volt lithium coin cell we use in field sensors and access-control readers. It’s a small, simple item, so you’d think pricing would be simple too. It’s not. One vendor lists it at $1.79 per battery. Nice. Then there’s a $12.50 certification fee, a $7.95 shipping charge, and a 100-piece minimum. Another vendor lists the same battery at $2.10, sells it in packs of 20, and doesn’t charge a separate handling fee. Which is cheaper? If I need 300 batteries, vendor one is cheaper. If I need 30 for a quick pilot, vendor two is cheaper. None of this is visible from the headline per-unit price.
What bugs me is not the fees themselves. Companies can charge what they want. What bugs me is the surprise. I have to build a spreadsheet before I can answer a basic question: should we order 30 or 300? A transparent quote lets any buyer do that math without a magnifying glass.
The Panasonic Arc 7 was another reminder
The same pattern repeats outside high-tech parts. Last year, I was asked to source Panasonic Arc 7 electric shavers for employee service awards. Online retail was close to $200. A business-gift supplier quoted $170, but after a logo setup fee, a per-unit handling fee, and a “priority production” charge, the total was about $210 each. Another authorized reseller quoted $195 flat—no setup fee for a simple logo, and shipping included. The second quote looked more expensive, but it was actually the lower total. If you ask me, that’s how a lot of B2B purchasing goes wrong. We compare the visible top line and ignore the invisible bottom line.
Office phones and the clear phone problem
Our phone systems have taught me the same lesson at a bigger scale. We’ve bought Panasonic phones for three locations. The product specs are usually clear enough—handset ergonomics, cordless range, DECT security, and so on. What is not clear is the cost of making the phone system work: licenses, provisioning, installation, training, and support. One reseller quoted us a phone system and included the call-control licenses and three days of on-site configuration. Another quoted only the handsets, without mentioning licensing at all. On paper, the second quote looked cheaper. In practice, it wasn’t even close to complete.
A search for a clear phone solution should mean a system with clear audio and a clearly defined price. Too many vendors only offer the first one. I don’t think that’s acceptable in a business purchase.
Even the phrase “how to crimp pins” is a procurement lesson
Then there is the one that changed how I view supplier markups. Our maintenance team kept buying pre-assembled cable sets with 4-pin connectors. A vendor charged around $38 per assembly and refused to break down parts and labor. One day our senior electrician said, “You know, it’s not hard to learn how to crimp pins properly.” So I looked into it. We ordered connectors, pins, and a ratchet crimping tool. The per-cable cost dropped to about $11. The real advantage wasn’t just the money. It was visibility. Once we understood the components, the vendor’s $38 price was either fair or not—and we could finally decide.
I would have paid the $38 if the vendor had simply said, “$18 of this is parts, $20 is hand assembly, and we replace any defective assembly for free.” That is a reasonable business model. The problem was silence.
But isn’t a hidden fee just a different kind of margin?
At this point, a fair objection might be: “Every company needs margin. If you take away the shipping fee, the margin just moves into the product price. Why does it matter?” It matters because pricing is information. A buyer comparing two quotes needs the full cost of ownership. If you hide a fee, I can’t compare you to a competitor that lists everything. I can’t defend your quote to my CFO. And I start to wonder what else is buried in the fine print.
Per FTC guidelines (ftc.gov), advertising and pricing claims are supposed to be truthful and not misleading. I am not a lawyer, and I won’t pretend to be one. But as a procurement person, I know this: when a “$75” battery order turns into a $97 invoice, the trust damage is real. It happens one fee at a time.
Bottom line: visible pricing is the base of the pyramid
After five years and well over 300 orders, I have come to believe that transparency is not a marketing feature. It’s the foundation of every good vendor relationship. I don’t need the lowest quote. I need the most honest quote. I want the number that will still be true next month, not the number that gets adjusted after I’ve committed.
When I see Panasonic equipment on a quote—whether it’s a sturdy office phone, a small battery, or an Arc 7 shaver for a retirement gift—I expect it to be good quality. But the product is only half the story. If the supplier plays games with the arithmetic, the hardware doesn’t matter. I’d rather pay an honest $90 for a $90 product than take a fake discount and wait for the reveal. That is how I buy, and honestly, it’s the only way I can sleep at night.