A Quote template or Quotation template is a document may contain price quoting figures with description of conditions for potential sales, agreements, and taxes details. Actually, suppliers are preparing this document to provide estimation of costs for product or services to customers. Once the quotation is acceptable from customers, it will be convert into agreement between supplier and customers for described product or services with said conditions in quote. Most of the businesses are using this document for same purpose with little different contents.
Usually, the price quotation is response from the supplier of the customer’s quote request. It is describing the estimate of the products that supplier want to sale to customers. Actually, quote template may cover customer name, customer details, details of materials / services request for quote, taxes, and general terms and conditions. These are common contents that normally you can see in any quote template.
Why quote template is important for business?
When any business engages with manufacturing products that they need to quote template due to explaining their facilities, availability, competence and costs of products. Usually, any customer expecting any business product or services, they will ask to supplier for provide estimation of their requirements. At the movement, supplier will be conduct their requirements, list out the potential products functions, costs and applicable taxes with specific document. This document is quotation or price quote document. Usually, price quote template may contain:
- The brief description on the product / service qualities for each particular.
- A specific price per particular, specific currency details.
- Estimated amount of each part, product or services – Details of all the item total, sub-total amount.
- The value added taxes, applicable as per local bodies
- The total amount to be paid by the customer.
- Terms and conditions from supplier for selling the product or services.
This above information is common, and use for basic structure of price quote. Mostly in the business price quote document, provide a prospective customer with an estimation of their costs for the materials, even and for services.
Price terms [Shipping / trade terms] – types of Price Quotes
Most of the business peoples are asking me about type of price quote or international price terms through most of the business deals are done. This price terms or quotation term can make the business deal or breaks. Actually, this is trigger point of the quote document. Hence, it is very important to understand the basic structure, calculations and how the businesses (mean suppliers) are put down this price term in the quotation. Here the following are some of the most common type of quote terms, which are based on the supplier’s, geographical, or industrial segment. These conditions can be applicable once the customer agree on it. Here is some basic type of terms:
EXW (Ex. Works – Factory) Quote
This is often use for international trading the materials mean for export jobs as well domestic. In this price term, supplier gives a price to customers as Ex. works cost. Means customer have to bear shipping and transportation expense on self. The prices may give on cost that make goods ready for pickup from factory (works). In this term, all transportation costs and risk are assumed by the customer.
FOB (Free on Board or Freight on Board) Quote
With this quote term, supplier makes a condition for the delivery of the product, with transporting as well insurance till shipping the material at the nearest port free of charge or including.
How supplier may calculate F.O.B.?
Product Quote – 100 Nos. x $50.00 = $5000.00
Transportation – At Any nearest port = $150.00
Insurance – XYZ company’s = $70.00
Labor charge – 5 Manpower x $30.00 =$150.00
F.O.B. Quote = $5370.00
In some cases, supplier provides its own vehicle, labor as well any concern expenditures. Hence it is possible to F.O.B. Quote will be very low. Such as $5070.00
Usually, in this terms, supplier is responsible for deliver the material at nearest port, and quote as same. Later on, customer may responsible for the shipping from there, and all the related expenses will bear accordingly.
CIF (Cost, Insurance and Freight including) Quote
This is one of the common quote terms which are used for international trade business. In this case, the quote also includes freight, insurance, labor charges, to deliver the material to “customer” nearest port. Even it will be only till customer’s nearest port – Later all the responsibility will be bear by customers to pick up the materials from the port.
Here as above, I tried to simplify the description of common shipping terms which are widely used for the international trade businesses. Even there are so many terms which are normally done on two parties i.e. supplier and customers are communicate. Some feeds, custom clearances, L.O.C. (Payment Terms) etc. may depends on discussion of both the parties.
Important Contents of a quote template
If you never made a quote template before then you should have to find some examples which may guide you about basic structure of quote template. As below there are some ready made templates are given, you can check out instantly. Even, here in the section you can check what actually basic contents of a quote template.
When you are new about quote template documentation, it is obvious the question rise, what to include in the quote template or what information are important or basic for it. Here as following points that you can check out which are important contents of a quote template:
Here in this phase, you as supplier need to include your business name, contact information, date of the quote, general description about the product or services, reference number of inquiry if any, and customer contact details.
Prices of products
This is much important part of the quote template that on entire deal is depends on it. Here in this part of the template, you have to describe the clear and easy description of the estimation of products, and figures which are easier to calculate by customer. Usually in this section may include serial number of item, type of product, Description of product, Quantity in unit, Unit price, and price (Price can be depending on supplier’s shipping terms such as FOB, CIF etc.). You have to also describe the total amount, applicable taxes and levies.
Describe how you calculate this cost?
This section will be much helpful to easily convince to your customers to finalize the deal. Here you can describe the estimated or quoted prices are fair for both the parties. You can describe the actual calculation of the quote which you are going to provide to your customers. Such as:
Material Costs >> 100 Nos. x $40.00 = $5000.00
Labor charges >> 10 Manpower x $30.00 =$300.00
Other expenses >> A, B, C, D =$200.00
Tax and levies >> Central tax (18%) Approx. = $990.00
Total Order costs = $6490.00 or Price = 64.90/Unit
Description of shipping & Delivery
This part describes the details of time schedule for shipment, estimated delivery date & location, as well specific schedule of internal processes. In case of customer expecting quality inspection from third party, or self-inspection, you have to also describe it on time scale.
Mode of payment is one of the important part of the quote template, even which method can be reliable, and comfort for your customers is also needs to include. In case of any facility not available at your area, you can also explain clearly.
General terms and conditions
This is specific and important part of the quote template. The part may helpful to explain your common terms and condition related to product or services, payment, delivery or any other thing. Such as what will be mandatory test for product, what maximum or minimum specifications will be meet to product, validity of the quote, supplementary requirements etc.
Examples of Quote templates
When you are creating a quote template first time then you have to check out these following readymade examples. These example templates made with excel sheets. Hence, it is very easy to use, even advance tools are also used for making traceable and monitoring purpose. These templates are based on basic requirements for the quote the prices for business products or services.
Free quote template
It is obvious that when you are creating a quote template, it will be take time and money to build specific template. Here as you can see free quote template which is simple and easier for customization. This template has three major part, one is general details such as quotation date and number, customer and company name and details, general terms. Second part is about the product, and quote details, here all the details are easy to customize i case if you want to prepare the quote template for service or any other product. At the third phase is terms & conditions which are general.
Quote template excel
Actually preparing quotation is part of the marketing, and as you well know marketing department having a so many creative works. But you don’t have to waste time for creating some quote templates, if it is ready made available with so many varieties. Hence, here we tried to make some ready made templates which are easier use for industrial requirements such as manufacturing, and engineering units. These templates are made with excel sheet. As you well know excel is very reliable, quick, easy for use and flexible application. Hence, it will be more beneficial to creating quote template with excel. This ready made template you can download for your business requirements, and use as your design of products and customer expectations.
Sample quote template for excel
As you can see above is sample quote template made in excel sheet. This price quote template is helpful as sample for making easier for creating business quote template for your business. Usually, it may helpful in binding, which is used as estimation of bid the costs of product or services.
Quote template word
In this price quote template, you can clearly describe the list of products, material quantities, unit rates, and total costs. At the same thing, you can describe your company details at top or bottom of the template. You have to also describe each item prices, and its unit values to easier for calculate the figures. This template made with word hence, it will be easier to manage the details with specific and structural way.
Business quote template
The unique design will always make positive impact on the reader. Here you can see this template design is very simple but unique, and only useful information are mentioned. Hence, this type of templates are always gives an advantages for business use. This template is really eye catchy and attractive even simple and sober.