What is a quotation?
The quotation is a document that is provided by the seller to the buyer to let him know the price and the conditions for goods and services.
Quotations are not generally legally binding unless they are not part of any authorized contract. However, if the customer agrees to the quotation, it is generally accepted that he is committed to buying offered goods or services at a specified price.
How to write a quotation
There exist various methods for composing a quotation. You may opt for online software, leverage a quotation template in Word or Excel, or adopt a more personal touch by crafting the quote by hand.
When contemplating how to draft a quotation, several factors come into play.
First of all, consider the most effective means of communication with your clients. The timeliness of delivering your quotation is crucial, prompting many businesses to utilize invoicing software. This approach allows for the swift creation of quotes, enabling direct delivery via email, text, or platforms like Facebook or WhatsApp.
Additionally, consider the visual professionalism of your chosen method. While there's no mandatory requirement for a specific quotation format, layout, or template, it's essential to deliver a polished and professional appearance. Sending a quote that appears unprofessional or amateurish can inadvertently convey a negative impression of your business and the quality of your services.
What should be included in a quotation?
Regardless of the method you choose for crafting a quotation, it is essential to retain a comprehensive and professional quotation template that can be easily filled in whenever a quote needs to be sent.
In contrast to invoice templates, which are subject to numerous legal restrictions and regulations, there are relatively few rigid rules governing what a quotation must cover. Nonetheless, employing a quotation template containing the following information enhances the clarity for potential customers regarding their commitment:
The Price: Your quotation template should contain the total amount due for the client's order, along with the individual prices for products or services. Consider breaking down the final price by incorporating costs such as labor, materials, and applicable VAT.
Expiration Date: Each quotation should clearly state the validity period, informing customers of the timeframe within which they can accept or decline the quote.
Your Company Details: The quotation template should prominently display your business's comprehensive contact information, including the business name, address, phone number, email address, and, if relevant, business registration number or VAT registration number.
Customer Details: Include the contact details like the customer's name, phone number, email address, and any other relevant contact information.
You may also opt to incorporate payment terms and provide a tentative schedule outlining the projected duration for project completion or the expected delivery time for goods. This additional information contributes to a more transparent and comprehensive quotation.
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