What is a sales quote?
Sales quote is a list of prices for particular products and services as well as detailed item-by-item breakdowns.
Commonly, in advance that any purchase could be made, a sales quote will be created in order to inform potential buyers about prices as well as other information about products and services. When that quote is accepted, the buyer is committed to paying for their orders at the stated prices.
Types of sales quotes
In general, there are three main types of sales quote, which are
- Estimates
Since there are variable costs whose changes depend on the market, such as labor, commissions, and raw materials, some sellers choose to send their prospective buyers with estimated prices.
- Fixed price breakdowns
A fixed quote included the exact cost for the entire project, which may involve stable prices for particular products, well-defined labor costs, and certain deadlines.
- Request for Quotation response
This type of document will be sent to a variety of suppliers simultaneously when any companies want to know quotes of particular products or services currently available on the market. When sending this quote, companies tend to request fixed-price quotes.
The common structure of a sales quote
Common sales quotes usually include these following components
- Introduction: This part is usually about the brief description and promotions of companies, which may include business name, possible contacts, address, etc.
- Price: Sales quotes should provide buyers with the total value of their orders as well as the prices for particular products and services and also VAT.
- Expiration date: It is necessary that any sales quote should clearly inform the buyer about how long it can remain valid or when the customers will have to respond to the quotes.
- Legal documentation: At the end of the quotes, some companies may attach their contracts, payment terms, warranties, T&Cs, purchase order templates, and other possible information.
