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What is a quotation?

Defined: A document sent to a potential customer offering to sell goods or services at a certain price, under specified conditions.
A quotation is used to let a potential customer know the cost of goods or services before they decide to purchase them. When a seller sends a quotation, it commits them to a certain price. This is why quotations are mostly used when costs are relatively stable and the services/goods to be provided can be accurately estimated (labor, cost of raw materials, etc.).

What to include in a quotation

There are a number of items that should be included and considered when preparing a quotation for a customer.

First of all, a quotation should include the price that you have decided to charge for the service or goods you will provide. In a quotation, you can include a breakdown of the components leading to the settled price (such as labor costs, raw material costs, VAT etc.) You may also want to specifiy a time schedule: i.e. how long the project will take you or how long it will be until goods are delivered.

A quotation may also indicate a specific time period for which it is valid, e.g. 30 days. Also, a project or service quotation may include an explaination of how any requests for modifications or changes will affect the price once the project is underway.

Quotations in E-conomic

The-conomic accounting software makes it easy to prepare and send quotations to your customers.

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