What is Quotation? Meaning of Quotation ↓
A Quotation is a describe of piece of job organisation offer made past times a seller to an interested buyer to sell sure enough goods at specific prices too on sure enough terms too conditions.
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It is a respond 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 inwards the inquiry letter.
The seller should post the best possible quotation therefore that it induces the buyer to house an social club because it is the footing on which the interested buyer decides whether to purchase or not.
The quotation must live on clear, courteous too concise.
Contents of Quotation ↓
The quotation may comprise the next points :-
- Details nigh lineament of goods offered for sale.
- Details nigh quantity of goods offered for sale.
- Type of quotation.
- Sale toll per unit of measurement of the commodity.
- Term of payment similar Cash or Credit, merchandise discount, cash discount too other allowances if any.
- Time, way too house of delivery.
- Details of duties, Octroi, etc., payable.
- Details of packing, labelling, insurance, etc.
- Net toll payable.
- E too O.E. (errors too omissions expected)
Kinds / Types of Quotations ↓
Following are the brain kinds or types of quotations :-
1. Loco Price Quotation
Loco way 'On the spot'. Therefore, the loco toll refers to the cost of goods at the manufacturing flora or godown of the seller. Once the goods are out of the sellers' manufacturing flora 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 toll quotation.
2. Station Price Quotation
Under this quotation, seller's responsibleness is to post the goods to the nearest railway station from his warehouse. It includes the cost of wagon of goods to the station. Since he delivers the goods upto the station, he charges a footling higher price. All farther expenses on goods such equally freight, insurance, etc. accept to live on borne past times the buyer.
3. Free On Rail (FOR) Price Quotation
Free On Rail (FOR) toll quotation covers the expenses of carrying the goods to the railway station nearest to seller addition the loading expenses, freight too unloading expenses are to live on borne past times the buyer.
FOR toll quotation = Station toll quotation + Loading Charges
4. Cost too Freight (C & F) Price Quotation
Cost too Freight (C & F) toll quotation includes the cost of the goods too all the expenses similar wagon to the seller's nearest station, dock too loading charges too freight. Expenses similar insurance, unloading too cartage to the buyer's house are to live on borne past times the buyer.
C & F toll quotation = FOR toll quotation + Railway Freight.
5. Cost Insurance too Freight (CIF) Price Quotation
There is a lead chances involved inwards transporting goods too this lead chances is covered past times insurance. Generally, the buyer pays insurance charges only if CIF quotation is mentioned too then the seller pays for the insurance charges along alongside other previous mentioned prices. So, the toll includes cost of the goods addition wagon upto seller's nearest station, loading, freight too insurance charges.
CIF toll quotation = C & F toll quotation + Insurance.
6. Franco Price Quotation
Franco toll quotation is the highest toll quotation. Inspite of existence 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 toll quotation = All expenses upto the buyer's warehouse.
7. Free Alongside Ship (FAS) Price Quotation
Free Alongside Ship (FAS) toll quotation includes the cost of the goods too all the expenses to deliver the goods at the dock nearest to the seller. The buyer has to comport the expenses of loading, insurance, freight too the customs duty, etc., inwards add-on to the cost of goods. Though this quotation is used inwards around countries, it is non inwards role inwards India.
FAS toll quotation = Loco toll quotation + cost of wagon of goods upto the harbour nearest to the seller.
8. Free On Board (FOB) Price Quotation
Free On Board (FOB) toll quotation is similar to FOR inwards inland trade. This is commonly used inwards unusual trade. Under FOB quotation, the seller quotes a toll which includes all the expenses incurred untill the goods are truly delivered on board the ship at the port of shipment.
FOB toll quotation = cost of goods + expenses upto goods on ship's board.
9. Cash With Order (CWO) Price Quotation
In Cash With Order (CWO) toll quotation, the buyer has to post 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) toll quotation, the buyer has to pay cash later on receiving the delivery of the goods ordered past times him.
