Why is it dangerous to rely exclusively on market knowledge to compare quotes?

Relying exclusively on market knowledge to compare quotes can be hazardous due to the inherent nature of market volatility. Markets can fluctuate for a variety of reasons, such as changes in supply and demand, economic conditions, geopolitical events, or shifts in consumer preferences. These factors can significantly alter perceptions of value over time. A quote that appears competitive today may not hold the same value in the near future due to these dynamics, leading to potential financial loss or procurement decisions that do not reflect the true market situation.

In this context, relying solely on what one believes is the market value can result in misinformed decisions. For instance, if a buyer assumes that prices will remain stable based on past data, they may overlook more current information that suggests rising costs for certain materials or services. This reliance on outdated or static market perceptions, rather than a comprehensive analysis of quotes and value, increases the risk of making decisions that do not optimize cost-efficiency or reflect current market realities.