Quotation
Proper procedures smoothens the path of
commercial transaction
What is a business quote?
Also known as a quotation, a business quote, or simply a
quote, is a document that lists the prices proposed by a
seller for their goods or services and offered to a
potential customer. On sending the quotation to the client,
the supplier is committing to the proposed price and isn’t
expected to waver.
Source: https://www.deskera.com/
An important constituent of business
correspondence is inviting and submitting
quotations/ tenders, and placing orders. The
purpose of inviting quotations and tenders is
to secure the best and cheapest goods,
materials and services from reliable sources.
In writing them great care should be taken
to specify the requirements in terms of
quality, quantity, design, shape, size,
location (if necessary), time-frame and
mode of payment. Similarly, while accepting
the quotations or placing the orders, all
these details should be repeated so that
there is no ambiguity in their execution/
implementation.
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to Business & Technical Communication 5th edition. New Delhi: McGraw
Hill Education (India) Private Limited
Inviting
Quotation
Letter of enquiry will allow you to
ask them to quote their rates and terms of payment for the
goods your firm or company wishes to buy from them.
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to Business & Technical Communication 5th edition. New Delhi: McGraw
Hill Education (India) Private Limited
Approach to Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education
To achieve your objectives you should proceed in a systematic manner
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical
as follows:
1. Describe your needs clearly and precisely. Give detailed specifications
such as the shape, size, quality, material, etc., of the goods you require.
2. Request the seller to quote his prices and terms of payment.
3. Ask him for a sample, if necessary.
4. Give an idea of the quantity you intend to buy.
5. Indicate the time by which you would like the goods to be supplied. This
will help the seller determine whether during the period available he
will be able to meet your demand.
6. Ask if the goods are guaranteed and if so, for what period. Also ask the
seller to give an idea of the normal expected life of these goods.
START 7. Ask what accessories and spares, if any, would be supplied and how
(India) Private Limited
much would they cost.
8. If the goods you are ordering need installation, ask the seller the cost
of doing so and also the repair facilities offered by him.
9. As the processing of a purchase proposal takes some time, ask the
seller to indicate the period for which his quotations will be valid
Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education (India) Private Limited
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to
Example of Expressions
Opening Sentences
i. Please quote your lowest rate for the following items.
ii. We should be grateful if you would kindly inform us of the terms
and conditions for the supply of...
iii. We intend to buy the following items next month for our new
branch in... I should be grateful if you would kindly quote your
lowest rate for them. The detailed specifications are given below.
iv. May we request you to let us have your lowest rates for the
following items which we require in November?
v. Please let us know your lowest rates as early as possible for the
supply of...
Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education (India) Private Limited
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to
Example of Expressions
Closing Sentences
i. We look forward to hearing from you soon. If your quotation is
suitable, we shall be happy to buy all our requirements this season
from you.
ii. On hearing from you, we shall place a fi rm order with you.
iii. We hope the terms and conditions you quote will be satisfactory.
We shall, of course, be happy to order all our requirements from
you.
iv. As we need these goods urgently, we shall be grateful for an early
reply.
v. We look forward to placing an order with you.
Sending
Quotation
Your response to letter of enquiry should
be carefully drafted and should fully take
note of each item in the enquiry.
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education
(India) Private Limited
Do not forget to mention:
Mode and terms of payment.
Place and time of delivery.
Method of transport.
Charges on account of sales tax, octroi,
freight and insurance.
Packing and forwarding charges.
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education
(India) Private Limited
Placing
order
After you accept a quotation, the next
step is to order the goods.
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education
(India) Private Limited
To ensure efficient and prompt handling of your order bear the following in mind:
Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education (India) Private Limited
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to
1. Place a clear and firm order. It is the only thing which interests the supplier now.
2. Even if it amounts to repeating, do not hesitate to give a detailed, accurate, and complete
description of the items you wish to buy. Mention the size, color, quality, make, and
reference to catalogue or identification number, if any.
3. The next important thing is to specify the quantity you want. Also state the price per unit.
4. Indicate the mode and terms of payment. If you have been getting regular supplies from a
seller you may omit this information because he would automatically debit your account and
approach you for payment according to the mode mutually agreed upon. In other cases,
respect the wishes of the seller as far as possible and send the payment in the mode he
desires. He may, for example, demand a certain percentage in advance. Do not hesitate to
let him have it because you have accepted his quotation after carefully considering his
standing in the market and the quality of goods he has offered for sale.
5. In most quotations the mode of transport, viz., passenger train, goods train, truck, etc.,
would be stated. But if it is not, do mention the way you want it.
6. When you place an order, you expect the goods to arrive within a reasonable period of time.
However, it is always better to spell out what you consider to be the reasonable time-period.
START Sometimes you need goods urgently and you may have, in fact, indicated this to the seller in
your earlier correspondence. But to remind him it is necessary to mention it again.
7. State the full address of the place where you want the goods delivered.
8. Normally proper packing is the responsibility of the seller and its cost is included in the
quotation. But if you want a special kind of packing and are prepared to pay extra, say so in
your order.
9. Goods would be insured only when you specifically instruct the seller. If, however, it is the
normal practice to insure the kind of goods you have ordered, there is no need to include
Inviting Quotation
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to
Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education (India) Private Limited
Sending Quotation
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to
Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education (India) Private Limited
Placing the order
Sharma, RC and Krishna Mohan. Business Correspondence and Report Writing: A Practical Approach to
Business & Technical Communication 5th edition. New Delhi: McGraw Hill Education (India) Private Limited
THANK YOU
