What is required when comparing historical prices with new quotes?

Knowledge of market trends is essential when comparing historical prices with new quotes because it provides context for the pricing analysis. Market trends involve understanding fluctuations in supply and demand, economic indicators, seasonal variations, and any broader changes within the industry that might affect pricing. By being aware of these trends, one can assess whether the new quotes are competitive or reasonable compared to the historical data.

This understanding allows for a more informed decision-making process. For instance, if the market trend shows increasing prices due to rising demand, a new quote that is higher than historical prices may be justified. Conversely, if prices are trending downward and the new quotes are significantly higher, further investigation may be warranted.

While knowledge of existing contracts, standardized price comparison tools, and how to handle data are relevant factors in price analysis, they do not provide the insight that market trends offer regarding potential future pricing and overall market behavior. Therefore, analyzing historical prices with a firm grasp of market trends is crucial for a comprehensive evaluation.