Quotations are written documents providing information on the fixed costs for particular products or services and other terms and conditions issued by the seller subject to the approval of the buyer. Once the buyer agrees to the specifications of the quotation, the quotation creation of the seller becomes a binding agreement between the parties.
A quotation can be outlined and formatted in different ways depending on what suits your business industry. The Excel quotation format is the most widely used quotation outline as seen on the various examples of quotation outlines and formats on the quotation templates on this website.
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Common Quotation Format and Inclusions
For starters, it is best to know the most common quotation format used by various business industries as depicted on the best quotation templates that mostly have editable quotation formats in DOC. Included in a quotation are the following:
- Quotation Header and Title – This pertains to the identification of the quotation. It determines the purpose of a particular quotation as well as the type of industry for which it is used.
- Seller and Buyer Details – This can help determine the credibility and the legality of their respective businesses.
- Quotation Number and Date – This will serve as the basis of recording for both parties once the quotation is approved by the buyer and an agreement is established.
- Product Descriptions – The product descriptions include the item code, item name, unit price, and quality specifications that defines the product.
- Identification of Total Payment Amount – The total payment may include not only the cost of the products. There are factors affecting the total amount of payment such as existing taxes and agreed discounts affecting the payment cost of the product.
- Additional Terms and Conditions – Other terms and conditions include delivery terms, validity, and payment terms regarding the business transaction involving the products defined on the quotation.
Tips on Pricing Products on a Quotation
In a quotation, it is essential to price the products right to gain the approval of the buyer. Here are a few tips on pricing products on a quotation with example of quotation formats on the quotation samples of this website, as follows:
- Study the specifications on the buyer’s request for quotation. On the request for quotation given by the buyer, there are specific statements as to the coverage of the quotation and the product prices you have to consider.
- Always provide a breakdown of prices. It is your obligation to present the necessary details the buyer should know, whether they ask for it or not.
- Avoid pricing products too low. After taking into consideration all related costs, you must procure a reasonable price for your products. Presenting a low price will make the buyer doubt the quality of the product and you might find it hard to increase the price in the future.
- Value your products using a buyer’s perspective. The price you present to the buyer must reflect how valuable the products are on the buyer’s point of view.
The quotation format you use will aid the buyer in the decision he makes regarding the quotation. Thus, it is essential to procure a perfectly formatted quotation with reasonable prices the buyer would regret to decline.