What is Quotation? Meaning of Quotation ↓
A Quotation is a work organization offer made past times a seller to an interested buyer to sell sure enough goods at specific prices in addition to on sure enough terms in addition to conditions.
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It is a reply past times the seller to the prospective buyer. Hence, the quotation missive of the alphabet should live on prepared carefully past times the seller. It should comprise data on all points mentioned inward the inquiry letter.
The seller should mail the best possible quotation therefore that it induces the buyer to house an social club because it is the reason on which the interested buyer decides whether to purchase or not.
The quotation must live on clear, courteous in addition to concise.
Contents of Quotation ↓
The quotation may comprise the next points :-
- Details nearly character of goods offered for sale.
- Details nearly quantity of goods offered for sale.
- Type of quotation.
- Sale cost per unit of measurement of the commodity.
- Term of payment similar Cash or Credit, merchandise discount, cash discount in addition to other allowances if any.
- Time, trend in addition to house of delivery.
- Details of duties, Octroi, etc., payable.
- Details of packing, labelling, insurance, etc.
- Net cost payable.
- E in addition to O.E. (errors in addition to omissions expected)
Kinds / Types of Quotations ↓
Following are the top dog kinds or types of quotations :-
1. Loco Price Quotation
Loco agency 'On the spot'. Therefore, the loco cost refers to the cost of goods at the manufacturing industrial plant life or godown of the seller. Once the goods are out of the sellers' manufacturing industrial plant life or warehouse, all the expenses for carrying the goods from the seller's warehouse to the buyer's house are to live on borne past times the buyer. This is the lowest cost quotation.
2. Station Price Quotation
Under this quotation, seller's responsibleness is to mail the goods to the nearest railway station from his warehouse. It includes the cost of railroad vehicle of goods to the station. Since he delivers the goods upto the station, he charges a niggling higher price. All farther expenses on goods such equally freight, insurance, etc. convey to live on borne past times the buyer.
3. Free On Rail (FOR) Price Quotation
Free On Rail (FOR) cost quotation covers the expenses of carrying the goods to the railway station nearest to seller addition the loading expenses, freight in addition to unloading expenses are to live on borne past times the buyer.
FOR cost quotation = Station cost quotation + Loading Charges
4. Cost in addition to Freight (C & F) Price Quotation
Cost in addition to Freight (C & F) cost quotation includes the cost of the goods in addition to all the expenses similar railroad vehicle to the seller's nearest station, dock in addition to loading charges in addition to freight. Expenses similar insurance, unloading in addition to cartage to the buyer's house are to live on borne past times the buyer.
C & F cost quotation = FOR cost quotation + Railway Freight.
5. Cost Insurance in addition to Freight (CIF) Price Quotation
There is a direct a opportunity involved inward transporting goods in addition to this direct a opportunity is covered past times insurance. Generally, the buyer pays insurance charges simply if CIF quotation is mentioned in addition to then the seller pays for the insurance charges along alongside other previous mentioned prices. So, the cost includes cost of the goods addition railroad vehicle upto seller's nearest station, loading, freight in addition to insurance charges.
CIF cost quotation = C & F cost quotation + Insurance.
6. Franco Price Quotation
Franco cost quotation is the highest cost quotation. Inspite of beingness the highest quotation, buyers prefer this quotation because nether this price, the goods are delivered to the buyers at their door-step. The buyer is relieved from the tension of transporting goods from the seller's warehouse to his ain warehouse.
Franco cost quotation = All expenses upto the buyer's warehouse.
7. Free Alongside Ship (FAS) Price Quotation
Free Alongside Ship (FAS) cost quotation includes the cost of the goods in addition to all the expenses to deliver the goods at the dock nearest to the seller. The buyer has to behaviour the expenses of loading, insurance, freight in addition to the customs duty, etc., inward add-on to the cost of goods. Though this quotation is used inward around countries, it is non inward role inward India.
FAS cost quotation = Loco cost quotation + cost of railroad vehicle of goods upto the harbour nearest to the seller.
8. Free On Board (FOB) Price Quotation
Free On Board (FOB) cost quotation is similar to FOR inward inland trade. This is ordinarily used inward unusual trade. Under FOB quotation, the seller quotes a cost which includes all the expenses incurred untill the goods are truly delivered on board the ship at the port of shipment.
FOB cost quotation = cost of goods + expenses upto goods on ship's board.
9. Cash With Order (CWO) Price Quotation
In Cash With Order (CWO) cost quotation, the buyer has to mail cash along alongside the order, otherwise, the social club may non live on executed.
10. Cash On Delivery (COD) Price Quotation
In Cash On Delivery (COD) cost quotation, the buyer has to pay cash later receiving the delivery of the goods ordered past times him.
