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What Is a Price-Quality Ratio?
An assessment approach that scores price and quality separately and combines them by weighting to find the best overall value.
How does a price-quality ratio work?
Price and quality are scored separately and then combined using the published weighting, for example 40% price and 60% quality.
How is price usually scored?
Often relative to the lowest price, though the exact formula should be published in the assessment methodology.
What does the ratio tell suppliers?
Where to focus. A high quality weighting rewards strong solutions, while a high price weighting means cost is likely to decide the outcome.
