Want to know the most expensive part on any bill of materials?

It’s the cheap one that fails.

Buyers of electronics had a straightforward mission statement for years. Find the part. Negotiate the best price. And then get out. And for years, that strategy served them just fine.

Here’s the problem:

The world shifted. Tariffs, shortages and counterfeit parts have made “cheapest” one of the riskiest words in procurement. Savvy buyers are asking a different question these days…

What will this part really cost over its whole life?

Let’s jump in!

Inside this guide:

1. The Trouble With Chasing The Lowest Price
2. Why A Stripline Directional Coupler Tells The Whole Story
3. Counterfeit Parts Are On The Rise
4. The Hidden Costs Nobody Puts On The Quote
5. How Smart Buyers Source Parts Today

The Trouble With Chasing The Lowest Price

Lowest-cost sourcing seems like a savvy strategy in theory. You save a few pennies on each component, and those pennies multiply over thousands of pieces.

But a purchase order only contains one number. It doesn’t reflect the line that grinds to a halt when a batch fails testing. It doesn’t reflect the engineer who searches for weeks to find a fault. And it certainly doesn’t reflect the frustrated customer on the phone.

This is why the industry is shifting. The Global Electronics Association predicts there will be a major shift away from lowest-cost sourcing strategies in 2026 and businesses are beginning to favor suppliers that are closer to home.

That is quite the shift. Buyers went from lowest price chaser to stability in just decades.

Price still matters. It’s just not the only thing that matters anymore.

Why A Stripline Directional Coupler Tells The Whole Story

Want a perfect example of this shift in action? Look at RF parts.

The stripline directional coupler takes a small sample of the power travelling down a signal line. Engineers use these components to measure power levels, monitor signals or to protect sensitive equipment in radar systems, test equipment, and communication systems. These devices seem like small, simplistic components. However, the stripline configuration must be constructed within strict tolerances to ensure the coupling, directivity and loss remain within the design specifications.

If any of those values change, the system measures an incorrect power level. This is why engineers will gladly pay more for a reliable RF directional coupler with verified specs rather than risk it with an unknown stripline directional coupler that “looks good on paper”.

Think about it:

It may cost you a couple dollars to buy a cheap coupler. But if it results in bad readings in a field system you could be facing:

• Failed test results
• Returned units
• Costly repairs out in the field

Suddenly, that “bargain” doesn’t look like much of a bargain at all.

Counterfeit Parts Are On The Rise

Here’s something that might surprise you…

Counterfeit parts are still very much a problem. They’re even increasing. The Electronic Resellers Association International (ERAI) recorded 1,055 suspect parts in 2024. That’s a 25% increase from the previous year, and the largest number since 2015.

It isn’t just obsolete, hard-to-find components either.  Counterfeiters are increasingly targeting active parts available from legitimate sources.  You can no longer assume that an in-production part is safe.

Buyers understand this as well. In one industry poll, 87% of respondents viewed counterfeit parts as a serious or critical threat.

So what’s driving it?

Price pressure. If tariffs increase the price of authentic parts, suddenly that rock-bottom price from an unknown seller seems really attractive. And that’s where counterfeiters step in.

The Hidden Costs Nobody Puts On The Quote

So if the sticker price isn’t the full story… What is?

Smart buyers focus on total cost of ownership (TCO). Simply defined, TCO is the summation of all costs generated by a part from order date through service exit.

Downtime

When one piece fails on the line everything stops. People wait. Orders backlog. One defective run can ruin a year’s profit in one afternoon.

Rework And Returns

Counterfeit components trapped at the door are bad. Counterfeit parts that make it into final products are worse. Now you have to pay for warranty repairs, shipping costs, replacement parts and lost goodwill. A few dollars to catch a counterfeit part at the door. Hundreds or thousands to find it in the field.

Lead Time Surprises

Cheap suppliers are often late. “Low price” is meaningless if parts arrive 12 weeks late and derail your build schedule.

But wait…there’s more. Now you have rush shipping costs, overtime and possibly a second source to cover you. That’s twice the cost for the SAME PART.

Here’s the bottom line:

The cheapest part you’ll ever buy is one that costs 10% more but doesn’t fail.

How Smart Buyers Source Parts Today

The good news? You don’t have to overhaul your entire supply chain. Most buyers are simply tweaking a few areas.

Here’s what they’re doing:

• Purchase only from reputable sources: Purchase directly from the manufacturer or an authorised distributor where possible.
• Asking for test data: Real performance data beats a nice-looking datasheet every time.
• Have multiple suppliers: Two reliable suppliers are better than one inexpensive supplier.
• Involve buyers early: Engineers and buyers collaborate during design, rather than afterward.

The last one is significant. Design engineers consider supply risk when they select parts, in addition to performance requirements. No surprises when scaling up.

And here’s the kicker…

None of these steps are difficult. They just require a change in mindset. Instead of asking “What part will cost the least?” you begin asking “What part is safest while still getting the job done?”

It really is that simple.

Putting It All Together

Lowest-cost sourcing had its day. Tariffs, shortages and rising counterfeits make price-centric sourcing too risky.

Smart electronics shoppers have caught on. They see the big picture:

• Quality — parts that work the way the datasheet says.
• Reliability — suppliers that deliver on time, every time.
• Total cost — every expense, not just the price tag.

If you are purchasing a stripline directional coupler for a radar application or just a resistor for a consumer device, the principle is identical.  Spend money on quality upfront and you will avoid a lot of heartache (and expense) later.

Cheap is great… Right up until it isn’t.