What is Quotation?
A formal statement outlining the estimated cost of a specific job or service
A quotation serves as a link that connects an inquiry to a business transaction. A price quote is a commercial document that outlines for the customer the fixed cost in exchange for the goods or services provided. A quote is only valid for a limited time.
The price quote stage is where new business is gained or lost, based on how much value for money it projects to the potential customer. Quotations are widely used in the manufacturing and service industries, as well as in the world of imports and exports.
Price quotations benefit the business in the following ways:
- Ensures that the customer receives a customized price for the services requested.
- It aids in the development of customer relationships by allowing the company and the customer to understand each other.
- In terms of pricing, it assists the business in understanding the psychology and behavior of the customer.
- Providing a price quote increases transparency and openness with the customer, facilitating a trust-based relationship.