In the business and professional realm, quotations play a pivotal role. It is considered as a pre contract agreement. They are used in order to clarify and forged new business and professional relationships. There are various types of quotations formats that are applicable to specific transactions. One widely used type is the price quotation.
There are innate technical aspects in drafting a price quotation. For some, they consider it as a stressful endeavor. However, that should not be the case. To help you plan and outline your price quotation, you can refer to our 6+ price quotation samples in that are of great quality and structure. For more quotation templates and ideas, check out the provided links.
Generally, a quotation is a document that provides a detailed and estimated cost for a specific line of work or service, as defined by Oxford Dictionary. Specifically, a price quotation is a formal statement made by the seller to provide the buyer with a proposed list of goods or services with its corresponding charges and conditions of sale. You may also see Sales Quotation Templates.
Once the buyer accepts the quotation and affirms to its validity, the parties now will draft a contract to officially seal their agreement.
Most people consider a price quote, sales order, or invoice as synonymous. However, they serve different purposes. You cannot make use of such terms interchangeably. As per definition, a sales order serves as an official confirmation before the delivery of the purchased or ordered items. An invoice is a formal demand for payment may it be partial or full payment. It is not a contract nor a proposal.
In terms of basic components, the content of a price quotation may vary depending on the type of service or line of business. Generally, the following are essential components of a professional price quotation:
For you to know how the following elements are accordingly arranged in a document, check out our price quotation templates on our website.