An offer to sell products with specified cost and under a particular condition

A quotation is used to allow a potential customer to understand the price of merchandise or services before they choose to purchase them. When a seller sends a quotation, it engages them to a specific price. That is the reason why quotations are mostly used when prices are relatively stable, and the services/products to be provided can be accurately estimated (labor, cost of raw materials, etc.).

Several items need to be included and considered when planning a quotation for a client. First of all, a quotation should consist of the price that the seller has opted to charge for the service or products that he/she will provide. The seller may also want to specify a time program: i.e., just how long the project will require the seller or how much time it will be until products are delivered. A quotation may also signify a particular time interval for which it is legitimate, e.g., 30 days. Also, a product or service quotation may incorporate clarification of just how many requests for modifications or modifications will affect the price once the project is underway.