What Is a Sales Quotation?

A sales quotation describes the products or services offered by a business that the customer seeks, and their associated prices, terms, and conditions. This document aims to help a potential customer make an informed purchase decision. The sales quotation clearly explains what the customer can expect from the business, including the products or services being offered, their specifications, and the related costs. It also outlines any applicable taxes, delivery fees, or other charges.

A sales quotation is critical for businesses as it helps establish a professional image and demonstrates their attention to detail. It also helps to ensure understanding and clarity during the sales process. Business quotations must be accurate, professional, and easy to understand to be successful.

What Is a Sales Quotation Used For?

A business primarily uses sales quotations to formally offer its products or services to potential customers. By using it, the customer can make an informed purchasing decision. The sales quotation outline or the sales quotation format sample details the specific products or services the supplier offers, along with information on delivery times, payment terms, taxes, fees, or discounts.

Many industries, including manufacturing, retail, and other service-based businesses, use sales quotations, for high-value or customized products or services, where pricing can vary depending on specific customer requirements. In addition, sales quotation formats also serve as legal documents in case of any disputes or misunderstandings between the business and the customer.

Elements of Sales Quotation Format

To be able to make a professional sales quotation format, it is vital to know all the elements that need to be present in it. Below is the list of all the details that a standard sales quotation should have:

• Seller's company name

• Address and contact details of the seller

• Quotation number

• Name and business contact of the seller

• Quotation date

• Terms and Conditions (Sales and Payment)

• Details of the items to be filled:

FAQs on Sales Quotation Format

What is the difference between a quote and an invoice?

A quote is a document that outlines the cost of a product or service that a business provides. Invoices, however, are documents sent after a company has provided a product or service to a client for payment purposes.

What is the purpose of a sales quote?

The purpose of a sales quote is to provide a potential customer with the details of a product or service offered by a business.