Quotation or Quote in business is a formal document of reply by the seller to a prospectus customer or a buyer . However , it should contain the details of the products or services that the buyer wishes to avail along with the quantity.
When and where is a Quote issued ?
It is issued when a seller gets a RFQ(Request For Quotation) in a document form or through any other means where a person wishes to avail the services , however the same can be communicated verbally as well .
They are often required for services but is also commonly used by businesses that sell goods.
There are various types of quotations that may be issued :
- On the spot Quotation
- Station Price Quotation
- Goods delivered to the nearest station from the warehouse
- Free On Rail (FOR)
- FOR price quotation = Station price quote + Loading Charges(loading expenses, freight and unloading expenses )
- Cash With Order (CWO)
- The buyer has to send cash along with the order
- Cash On Delivery (COD)
- The buyer has to pay cash after receiving the delivery of the goods .
What should be included in a Quote ?
It should include the price that you have decided to charge for the service or goods you will provide , while it may also contain a breakup of the various costs that may be incurred by you ( labor costs , taxes etc ) .
Also it may include a time frame for which the quote may hold valid .
*Sample of a Quotation generated in our Invoice .
Some Extra Knowledge
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