Business entities perfectly understand that how you present your quotation can make or break your chances of winning the deal. Quotation, also known as price quotation or sales quotation, not only is a form of a document but also is something that conveys a lot about how you deal with your potential customers and about your company as a whole.
In this regard, it is important that your quotation is not only clear and understandable but also elegant and professional to grab the attention of your prospective clients. Don’t know where to start? Never worry. We will help you get started and know about the basics of quotation in this article. Also presented are quotation templates and examples that will surely help you.
When a potential customer requests a price quotation, as a response, you have to send him or her a price quotation. A price quotation contains information about a certain product that the potential buyer is requesting as well as other important information related to the transaction. Here are the common elements that must be present in a quotation.
1. Company information: Firstly, you must present your company information to bring awareness to the potential customer of your business name, hence boosting your branding in the process. Moreover, you must include other key information about your company such as your contact details and address in order for the potential clients to easily communicate with you.
2. Salesperson information: The name and contact information of the salesperson in charge of the transaction must also be specified. Even before the start of the delivery of goods or performance of services, the transaction must be assigned to a salesperson who will handle such transaction. In this way, the potential buyer will have someone to ask or refer to in case he or she has questions and clarifications.
3. Validity date of the quote: The date of validity of the quotation must also be clearly specified. This is so because oftentimes, the cost of the raw materials required in the production of goods or the merchandise to be purchased can adjust and is constantly changing. The price may vary after a month or so. Hence, commonly, the validity period of a price quotation is 30 days.
4. Product details: It is important that the details of the product that the prospective buyer will be clearly specified in your quotation. This may include the size, color, quantity, and variations of the product. This is to provide the possible buyer with specific details of the product that he or she is requesting.
5. Price per quantity: The price per item must also be presented in the quotation. You might also indicate discounts in case you are offering one. Discounts would usually apply if the customer would buy in bulk or a certain number of items, encouraging the customers to buy in bulk or large quantities.
6. Taxes, fees, and other charges: It is vital that other charges must be clearly specified in the quotation so that buyers would know the additional payment he or she has to incur in order to complete the transaction. This also includes the shipping and transaction fees if it is agreed that the buyer will shoulder the shipping costs.
7. Warranty: Usually, when an entity sells a product, it typically contains warranties against defects. The warranty period must be clearly identified, and the scope of the warranty must also be clearly specified. The period of warranty depends on the nature of products as well as the discretion of the manufacturer.
8. Totals: This comprises the subtotal and the grand total of the products listed on the quotation. The subtotal refers to the amount of all the items in the list, while the grand total is the overall amount needed to be paid by the customers which includes the subtotal and all other charges, taxes, and fees.
9. Notes and terms and conditions: A brief statement of terms and conditions of the quotation must also be present along with the notes for the potential client. The note may serve as a supplementary information on the details of the products or services listed. It may also specify the limitations and terms of sale of the product or service.
10. Signature: Finally, the signature of the key personnel in charge of the transaction, usually the salesperson whose name is specified above, must be present in the quotation, usually at the bottom part, to confirm that the quotation indeed comes from the company and that he or she is the one handling the transaction or the contact or point person.
Templates are lifesavers especially when we ran out of time in making a layout for a price quotation. Creating a layout requires time, plus, you must ensure that all the elements must be present in your quotation. In order to lessen this burden, using a quotation template such as those presented above will help you create a price quotation with ease. The steps are pretty simple and easy:
1. Secure a quotation template: You can find a lot of styles and designs of quotation templates on the internet that you can use for your own business. You just need to customize the content and incorporate your information such as the business name, logo design, and, of course, the main content which is the pricing or quotation of the products or services as requested by a potential customer. The discretion on what template design to use solely depends on you or your company. Make sure to use the appropriate template, the one which is suitable and best represents the personality of your business entity.
2. Evaluate the request: Then, you must evaluate the request of the potential client. For services, you must assess the number of hours it would take to complete the project, the amount of labor, and other important information related to the delivery of services. On the other hand, for product quotations, you must see to it that you are presenting correctly the items that are requested by the prospective customer. Identifying these key information is important so you will know what to include in the list of items in your price quotation as well as the respective digits for those items.
3. Add the necessary information: Now that you have assessed the request of the potential client, you must incorporate these information in your quotation template. All you need to do is fill out the respective fields on the quotation template. Make sure that the information is correct and complete. Also ensure that all the necessary elements—company information, salesperson information, validity date of the quote, product detail, price per quantity, taxes, fees, and other charges, warranty, totals, notes and terms and conditions, and signature—are present in your price quotation.
4. Adjust and experiment other presentations: After incorporating all the necessary information, try to drag the elements around into a new position, checking if the presentation is better than the first one. You can experiment with other styles and formats as well as the colors and designs for your quotation. Do not forget to leave enough spaces, white spaces, so your page would appear cluttered and crowded. You can use boxes in order to group related information. You can also use tables and lines to organize and clearly present the information.
5. Finalize: When you have decided the layout and format of your quotation and input all the information, finalize everything by double-checking the spelling or the digits. Make sure that you commit no errors and that the information you have given is correct. It would create a great impact in your credibility if you submit a price quotation to a potential client yet claim it back for some certain errors in the amount, product description, date, among others.
6. Print and send to the prospective customer: Lastly, after ensuring that everything is without errors, create a printed copy of your document and send it to your prospective client. You may also send a soft copy in case they prefer to have one. Do not forget to keep a copy for yourself.
A quotation comes in different types. When it comes to foreign trade, the following are the main types of quotation that you must know:
Price quotation and estimate are the terms that you commonly encounter in a sales transaction. Both of them are requests from a potential client asking for the price of certain goods or services. The two might be similar in many ways, but they are different in some ways. The main difference is that in a price quotation, the price listed in the document is the final price that the client would pay in case he or she will accept the quotation while in an estimate, the prices are subject to change and are not final.
It is not all the time that the quote is accepted by the customer. There are those times when the customer would simply reject your quotation. In this case, you may submit a revised quote in order to get confirmation provided that it would be economically feasible for your company to make the revisions in the quote and that you will still be profitable even after the changes. You must seek assistance from higher authority before making revisions of the quotation.