Are you afraid that you will experience price fluctuation in your business? For small businesses, they have to consider a lot of things especially when it is all about the costs of their product or services. Quoting a price is mostly common in businesses involving custom jobs. In this article, you will be able to know about price quotation and how price quotation should be done.
A price quotation or a price quote is a type of document that provides a fixed price or cost for a specific project. It can also be delivered through a verbally depending on the type of communication that the client and owner uses. Price quotations are often valid in just a period of time and can be subject for change without a prior notice.
This is common among businesses that offers services or custom jobs. For example, you will be having a birthday celebration next month and you want to follow your desired venue decoration. All you have to do is to approach an event coordinator to see how much does he or she willing to offer with the design you proposed. Let’s say you want a Harry Potter-themed celebration. It is the job of the event coordinator to send you a price quote of your proposed design of which it consists of the decorations from the wall to the ceiling down to the centerpieces of every tables.
A quotation shows you the fixed price that cannot be changed by the client once he or she accepted it. You can specify to the price quotation what is being covered with the costs and other factors contributing to the additional charges.
An estimation is just a guess on how much would a certain product or service will cost. The cost could be more or less of what is given. Many factors should also be taken into consideration so that the customer will not be surprised with the final price.
The standard format for a price quotation would start from a quotation header, quotation body and quotation footer. A quotation header contains the name of the company, contact details, tax identification number, quotation number and date, payment terms and the name of the recipient. A quotation body contains the services availed by the customer. A quotation footer contains the total amount, the tax amount and in some, the validity of the quote.
This is one way of visualizing your project. In this manner, you will be able to gain views from your future clients.
This also helps you in gaining new clients and customers since it is easy and convenient.
Take note that your template should be unique and demonstrate your identity and the brand that you are managing.
A price list remains the same for every customer for a long period of time. This is applicable for specific products that requires tailored pricing.
You may include the total price, breakdown of the components of the price, validity of the quotation, estimated schedule on when will the services be done or when will the products be delivered, contact details and the mode of payment.
A sales quote is quite similar to a price quote. The only difference is that it is only used specifically to give quotations to products for a specific potential costumer.
Whether you are in a small or large business, it is also important to give yourself some time knowing about the fundamentals in quoting a price. It may be a little tricky at times, but it also helps your business and helps you gain more income.