Abstract: A system and method to provide a buyer with what the purchase cost should be for a part that needs to be procured from a supplier. Knowledge of what the cost should be enables the buyer to negotiate with the supplier, relying on accurate and fact-based data before approving a negotiated price. The supplier provides information about the price for the part through an interface over the Internet. Purchasing professionals at the buyer's end collect and store cost information obtained from various sources other than the supplier. This cost information is represented in a hierarchical manner. The should be purchase cost is calculated as a function of factors involved in the cost hierarchy. The difference between the price provided by the supplier and the should be purchase cost presents the buyer with potential savings opportunities, before making pricing decisions during negotiations.