The Significance of Quotation to Win the Business

In order to communicate the prices of products, goods and services to the potential customers, the sellers prepare a document called quotation. Quotations bear much significance to establish a business relationship with the prospective clients or customers. Most of the sellers use MS Excel to make a quotation.

The Quotation Template Creation

To make a quotation template, you first need to collect all important information like product details, pricing structure etc., so that you can create the right format easily. If you want to learn the business quotation in details, below is the information. You can also download the available samples on this page.

Tender Versus Quotation

Both the quotation and tender are important documents pertaining to business operations. Though these are commonly used documents in the business world, many people still don’t know the basic differences between the two, which are as follows:

  • The seller sends a quotation to the buyer, containing the prices of products, goods or services offered by the business. On the other hand, tender is the legal offer to provide specific products, goods or services.
  • Quotations are just the documents mentioning prices, and don’t essentially require an acceptance or rejection, but tender has to be accepted by the buying party in order to be implemented.

Request For Quote Letter

  • Type: docx

Why Quotations Are Used?

Following are the ways quotations are used in a business. You can find various quotation formats available in Word or PDF format online to make and format your own quotation document.

  • The businesses that want to inform their potential clients about the prices of the offerings they offer, use quotation. Often, potential customers ask for the quotation themselves for the products and services they are interested to buy.
  • A quotation helps potential customers to make their buying decision easily.
  • Quotations are the point of contact between the seller and the buyers, and thus, establish a business relationship between the two parties.

What are the Important Components of a Quotation?

A well-written and nicely-formatted quotation reflects your professionalism and the brand value, and helps attract the potential clients. Following are the important elements that you should include in your quotation.

  • Business Information: Include all relevant information regarding your business like business name, logo, contact details, office address and other important details.
  • Cost Bifurcation: Mention the product cost per unit along with associated labor cost.
  • Total Cost: Mention the total cost for materials, labors etc.
  • Price Variations: Always include the note that prices are subject to vary as per specific factors. Mention those factors also.
  • Schedule: Mention the average completion and delivery time for each product.
  • TOCs (Terms & Conditions): You must inform your potential buyer about the basic terms and conditions to avoid any confusion or conflict later.
  • Validity: Specify the expiry date of the quotation so that the potential buyers respond on time.
  • Customer Signature: Mention the requirement for the signature for accepted quotations.
  • Payment Modes: Include all payment modes that your business accepts, including Debit Card, Credit Card, Cash Purchase etc.
  • Taxes: Always mention if your prices are inclusive or exclusive of the taxes, if any.