Quotation - Meaning, Contents Together With Types Of Quotations

What is Quotation? Meaning of Quotation ↓

A Quotation is a concern offer made yesteryear a seller to an interested buyer to sell certainly goods at specific prices as well as on certainly terms as well as conditions.

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It is a respond yesteryear the seller to the prospective buyer. Hence, the quotation alphabetic character should survive prepared carefully yesteryear the seller. It should comprise data on all points mentioned inwards the research letter.

The seller should post the best possible quotation therefore that it induces the buyer to house an lodge because it is the reason on which the interested buyer decides whether to purchase or not.

The quotation must survive clear, courteous as well as concise.

Contents of Quotation ↓

The quotation may comprise the next points :-

1. Details nearly lineament of goods offered for sale.
2. Details nearly quantity of goods offered for sale.
3. Type of quotation.
4. Sale toll per unit of measurement of the commodity.
5. Term of payment similar Cash or Credit, merchandise discount, cash discount as well as other allowances if any.
6. Time, trend as well as house of delivery.
7. Details of duties, Octroi, etc., payable.
8. Details of packing, labelling, insurance, etc.
9. Net toll payable.
10. E as well as O.E. (errors as well as omissions expected)

Kinds / Types of Quotations ↓

Following are the primary 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 mill or godown of the seller. Once the goods are out of the sellers' mill or warehouse, all the expenses for carrying the goods from the seller's warehouse to the buyer's house are to survive borne yesteryear 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 railroad vehicle of goods to the station. Since he delivers the goods upto the station, he charges a petty higher price. All farther expenses on goods such equally freight, insurance, etc. bring to survive borne yesteryear 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 summation the loading expenses, freight as well as unloading expenses are to survive borne yesteryear the buyer.

FOR toll quotation = Station toll quotation + Loading Charges

4. Cost as well as Freight (C & F) Price Quotation

Cost as well as Freight (C & F) toll quotation includes the cost of the goods as well as all the expenses similar railroad vehicle to the seller's nearest station, dock as well as loading charges as well as freight. Expenses similar insurance, unloading as well as cartage to the buyer's house are to survive borne yesteryear the buyer.

C & F toll quotation = FOR toll quotation + Railway Freight.

5. Cost Insurance as well as Freight (CIF) Price Quotation

There is a gamble involved inwards transporting goods as well as this gamble is covered yesteryear insurance. Generally, the buyer pays insurance charges only if CIF quotation is mentioned therefore the seller pays for the insurance charges along alongside other previous mentioned prices. So, the toll includes cost of the goods summation railroad vehicle upto seller's nearest station, loading, freight as well as insurance charges.

CIF toll quotation = C & F toll quotation + Insurance.

6. Franco Price Quotation

Franco toll quotation is the highest toll 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 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 as well as all the expenses to deliver the goods at the dock nearest to the seller. The buyer has to deport the expenses of loading, insurance, freight as well as the customs duty, etc., inwards add-on to the cost of goods. Though this quotation is used inwards unopen to countries, it is non inwards purpose inwards India.

FAS toll quotation = Loco toll 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) 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 lodge may non survive executed.

10. Cash On Delivery (COD) Price Quotation

In Cash On Delivery (COD) toll quotation, the buyer has to pay cash subsequently receiving the delivery of the goods ordered yesteryear him.