What is a Business Quotation?
A business quotation is a formal document in any business transaction prepared by the seller and sent to a potential customer. Included in this document are the details of the transaction, for example, the list of goods or services requested by the customer, the amount or rate of each of those items, terms of payment, modes of payment, and quotation expiry date. It is created based on the products and services specified or demanded by the client.
How to Write a Business Quotation
1. Present Your Company Information
Firstly, you must present your company information—name, logo, address, contact number, email address, etc.—on the header of your quotation. This provides your customers with the means of communication in case they have concerns related to the business transaction. Additionally, this is also a way to increase brand awareness since this is the first thing that your audience will see.
2. Provide the Details of the Salesperson in Charge
When dealing with a customer, there must be someone in charge to handle the transaction so that the customer will have someone to ask regarding his or her concerns. In this regard, you must provide the details in your sample quotation, such as the name and contact number, of the salesperson who is in charge of the transaction.
3. Set the Validity Date
Whether you are providing products or services, you always need raw materials for your goods or your services. And the prices of these materials will often change at a certain point in time. For this reason, your business quotation must have an expiry date in case the current market price of the materials will change. Typically, the validity period for a business quotation is 30 days.
4. Provide the Details of the Rates and Prices
Make sure that you specify the details of the business transaction, such as the materials or labor needed, the quantity of those materials, the number of hours required to complete the project, the price of rate of those materials or labor, the taxes, and any other related charges, and the subtotal and grand total. Do not forget to highlight the totals in the simple quotation by rendering it in bold. In this way, the client can easily find the final amount that he or she is going to pay without hassle.
5. Present the Terms and Conditions and Supplementary Information
Even before the potential customer will finalize his or her business transaction with you, you must present the terms and conditions in the service quotation related to the transaction. This includes, but is not limited to, the terms of the contract, governing law, environmental provisions, suspension of services, payment terms, warranty, copyright, ownership rights, audit provisions, and termination provisions.
6. Affix the Signature
Lastly, to prove and confirm the validity and legitimacy of the document, the salesperson in charge of the transaction must affix his or her signature at the bottom of the printable quotation.