A price quotation is a special document that sellers use to furnish the buyers. It is basically a listing of the various goods and services that the seller provides and the prices for which they are charged. Some quotes also contain the terms and conditions that govern such sales.
Why is Price Quote used?
This document serves several purposes. Chief among these are:
Showcase the Prices of Commodities
The number one role that these quotes play is to showcase the prices of the commodities. This they do by principally identifying the goods and the services that are on offer as well as the costs involved in accruing them.
Provide room for Bargains and Negotiations
Upon knowing the overall price range of the goods on offer, a potential buyer will definitely learn how to bargain around the same. The seller, on the other hand, obtains some upper hand insofar as such negotiations are concerned.
Cushion Businesses against Fluctuating Prices
Lastly, the document cushions businesses against fluctuating prices. This they do because the contents are deemed legally binding on both parties. That way, a seller is sure to reap the associated benefits and revenue inflows regardless of the prevailing external environmental conditions.
Basic Contents of a Price Quote
At the start are the business details. These are the name, address, nature, and the ethos that the business adheres to while operating. They pave the way for the customer to learn more about the business they are just about to transact with.
It goes beyond to break the costs of the items to their finest details. That way, a would-be buyer gets to know the items he wants to leverage deeply and keenly. In the course of doing so, he makes his budgeting and preparations accurately too!
Payment Terms and Conditions
These are the terms that govern the purchase and the sales of the items. These could be sales discounts, the deadlines for the existing offers, refund policy, warranty, and money-back guarantee, to name but a few!
If the buyer had requested some specific goods and services, the total costs are displayed in the price quote too! Accompanying this metric are the discounts and any other special offers that may accompany or apply to that particular sale.
Quote Expiry Date
All quotes definitely have an expiry date that is attached to them. It is yet again important to figure this out when drafting the same. You have to categorically state it when handling and preparing this particular quote.
Why Price Quote Template is Used?
Using a price quote template allows you to just train employees to fill in the blanks. There is no missing data or no missed charges. It lessens the stress associated with trying not to forget something even in a large or complicated order. Once you are familiar with the template, a quick visual scan will tell you if anything is missing BEFORE your customer gets it. When you miss anything in a quote, it is very hard to go back and tell your customer you goofed. You usually have to eat it or risk losing a customer. This is never a good situation to be in, trust me. Being outbid on a quote because of a mistake is very frustrating.
Even the person in charge can have a bad day and forget something, we are all human after all. Using the wrong figures in a quote can mean possible overpricing and losing the job or losing money when the mistake is discovered later. Have you ever done that?
Using a price quote template is one tool where there really isn’t a downside. When everyone in your business uses them it just makes things go much smoother and with fewer headaches. Many major businesses use them, why shouldn’t you?
Free Price Quote Templates
Price Quote Template for Excel
Sales Quotation for Excel
Sales Quotation Template
How should it be formatted?
A typical quote has to be formatted, thus:
It ought to be superimposed on a letterhead. This is to give it an official character and make it legally acceptable by many parties to the job. The use of this letterhead is also a sure way of making the same legally binding.
As part of the letterhead, the business logo also has to be placed there. It is the logo that uniquely identifies a business from the others like them that deal in more or less similar merchandise or operate within the same sphere of influence.
The business address has to be incorporated as a point of contact between the business and the clients. This address has ideally to be physical rather than postal. It should give whoever is reading it a right picture of where to find the enterprise.
Terms of References
These are the rules that govern the sales of the stated merchandise. It is important to delineate these terms clearly to the advantage of everyone who beholds them. That is to make it plain for the potential buyer and to minimize conflicts thereafter.
The validity of the quotation
How long is the quotation bound to last? Does it have an expiry date, or is it wholly open-ended? You have to place all these vital pieces of information in the price quote for all to see. This, again, is necessary to minimize conflicts and unnecessary litigations.
Alright! You now know how to place a quote or write one altogether. With the knowledge you have generously receive, why not go ahead now and draft a quality one for yourself? We now wish you all the best in your drafting and use of these vital documents going forward!