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Contracts & Pricing

Unit Price

Unit price is the cost of a single unit of a product or service, used to compare offers and calculate the total cost of an order.

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Expressing price per unit — per item, per kilogram, per litre or per hour — lets buyers compare suppliers on a like-for-like basis even when pack sizes or quantities differ. It is the building block of quotations, catalogues and contracts, and multiplying it by quantity gives the line total on a purchase order.

Unit pricing exposes hidden differences that headline totals can mask, such as a cheaper-looking bulk pack that costs more per item. On B2B marketplaces, showing clear unit prices across suppliers is central to price transparency, helping buyers benchmark and avoid overpaying on routine, high-volume goods.

Frequently asked questions

What is unit price?
Unit price is the cost of a single unit of a product or service. It lets buyers compare offers on a like-for-like basis and calculate order totals by multiplying by quantity.
Why is unit price important in procurement?
It enables fair comparison between suppliers with different pack sizes, reveals cost differences that headline totals can hide, and supports benchmarking of routine, high-volume purchases.

Go deeper

Supplier price index (Malaysia)

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