What do you Understand by Quotations?
Purchases are substantial and the purchaser is interested in getting competitive offers, quotations are called for.
Based on their experience and enquiries, the probable suppliers are identified or shortlisted and thereafter, their quotations would be sought. Thus quotations have two phases. The first part is when the buyer calls for quotations from the seller.
The second part is when the supplier responds and sends the quotations or offer with all the relevant details. On many occasions, the supplier may not wait for the request and instead send the quotation, suomoto, for the consideration of the buyer. Quotations are sought and sent by business organizations as regular business correspondence. Quotations become effective when they result in specific orders.
Both while inviting and sending quotations, due attention should be given for all the relevant details and specifications. These include:
1. Description covering quantity and quality
2. Rates and discounts for bulk orders
3. Mode and terms of payment
4. Delivery time
5. Taxes, duties and charges
6. Transportation and delivery
7. Samples and approval
8. Insurance and breakage allowed
9. Guarantee period and after sales service
10. Annual Maintenance Contract (AMC) details
As clearly stated, in all these business letters due attention should be given to all relevant details to ensure clear mutual understanding and avoid different interpretations or expectations.