Quotation• It is the offer from seller side for goods to be sold at certain price, terms and conditions to the intending buyer. This is not legally binding offer unless it is coupled with the acceptance of the intending buyer as it becomes a contract enforceable under the law.• In business such offers are made through letters and we call them quotation letters. These letters are also termed “Voluntary offers”.
Important points or information before writing a quotation letter• The first basic point is expressing thanks to the enquiry made by the intending buyer• There has to specific mention of goods, services etc. by giving the name of its brand or make, size, color, design etc. with the desired quantity.
• There has to be specific and clear mention about the price of the item desired by the intending buyer by giving price per item, per dozen, per gross etc. It should also state so to what extra charges are included with the price like packaging, carriage, freight, insurance, taxes etc. If there are any discounts then it has to be mentioned specifically in the quotation letter.
• There has to be clarification about terms of payment, whether it has to be made through cash, cheque or draft etc.• The terms of delivery has to be clarified as to when and where goods are to be delivered.• The period for which quotation is valid.• In the end of the letter there has to be expression of hope that the quotation would be accepted.
Drafting Quotation Letters• (1) Calling for Quotation, similar to letters of enquiry. (2) Sending Quotation or reply to enquiry letter.
Opening sentences for letters calling for quotationExamples:• Please send us your quotation for the following …………. Please quote for the following …………. We would like to have quotation for …………..
The closing sentences could be• In case we find your prices and terms competitive or commercially viable, we may place an order with you. If your prices compares satisfactorily or favorably with others, we may place a regular order.
For sending quotations• The following opening and closing sentences could be used for sending quotations.Opening sentence: Examples.• We give below our rates and other terms for …… We are pleased to enclose our quotations for ……. We thank you for enquiry letter of ……..
• The closing sentences could beExamples:• We hope that you will find our rates competitive and place your order. We shall be glad to receive your order. We trust you will find our quotation satisfactory or reasonable and will favor us with your order.
Business order• In business or commerce, an order is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services.• From a buyers point of view it expresses the intention to buy and is called a purchase order. From a sellers point of view it expresses the intention to sell and is referred to as a sales order.• When the purchase order of the buyer and the sales order of the seller agree, the orders become a contract between the buyer and seller.