Procurement and MaterialsCost and Price Analysis for Buyers
A buyer who can only compare quotes is negotiating on the supplier's terms, because the supplier knows what the item costs to make and the buyer does not. This course closes that gap. Delegates work through cost structure and the difference between price, cost and value, cost breakdown analysis and how to request one that suppliers will provide, and should cost modelling built from materials, labour, overhead and margin. Learning curves and volume effects are covered. Indexation and escalation clauses are addressed, since input costs move. Total cost of ownership follows, including the costs that never appear on the invoice. The course closes on using this analysis in a negotiation without destroying the relationship.
Course objectives
- Distinguish price, cost and value in a purchasing decision
- Request and interpret a supplier cost breakdown
- Build a should cost model from materials, labour, overhead and margin
- Apply learning curve and volume effects to expected price
- Structure indexation and escalation clauses
- Calculate total cost of ownership including off invoice costs
- Use cost analysis in negotiation without damaging the relationship
Who should attend
- Buyers and procurement officers
- Category and commodity managers
- Cost engineers and estimators
- Finance staff supporting procurement
- Technical staff specifying purchased items
Course outline
- 01Negotiating on the supplier's terms
- 02Price, cost and value
- 03Cost structure and breakdown analysis
- 04Should cost modelling
- 05Learning curves and volume effects
- 06Indexation and escalation
- 07Total cost of ownership
- 08Using cost analysis in negotiation
Scheduled sessions
| Dates | Venue | Format | Price | Register |
|---|---|---|---|---|
| 19 to 21 October 2026 | Online | Online | R6,500 per delegate | Register Now |
| 4 to 6 November 2026 | Gaborone, Botswana | Classroom | R14,950 per delegate | Register Now |
| 18 to 20 November 2026 | Kigali, Rwanda | Classroom | USD 995 per delegate | Register Now |
| 7 to 9 December 2026 | Pretoria, South Africa | Classroom | R14,950 per delegate | Register Now |