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⟩ Suppose if we buy a customized product from a single source, how will you know if the price is fair?

Price comparison is easy when you are buying a standard product that is offered by multiple suppliers. You have easy access to price data points for comparison. But, when you are purchasing a customized product from a single source, you do not have the luxury of multiple price data points. Therefore, you need to use other techniques. One of those other techniques is using a “should cost model.”

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