Definition

A quote serves as an official offer outlining the terms and conditions under which the seller is willing to supply the requested products or services.

What is quote?

A quote outlines the proposed price, terms, specifications, and other relevant details for the products or services being offered. Quotes are typically issued in response to a customer’s request for pricing information and serve as a key step in the sales process.

Contents of a quote:

• Price: The quote includes the total cost of the products or services being offered, broken down into individual line items if necessary. 
• Terms and conditions: The quote outlines the terms of the proposed transaction, including payment terms, delivery or service timelines, warranties, guarantees, and any applicable taxes or fees.
• Specifications: For product quotes, detailed specifications or descriptions of the goods being offered are provided. For service quotes, it may include a description of the services to be performed, deliverables, and project milestones.
• Validity period: Quotes often have an expiration date or validity period, indicating the timeframe within which the customer can accept the offer at the specified price and terms.
• Contact information: The quote includes the seller’s contact information, including name, address, phone number, email, and any relevant business details.

The primary purpose of a business quote is to provide potential customers with detailed information about the products or services offered by a business and the associated costs. They are typically issued in response to customer inquiries, requests for proposals, or formal bidding processes. 

While a quote is a non-binding offer, it forms the basis of a potential contract between the seller and the customer. As such, it’s important for businesses to ensure the accuracy and clarity of the information provided in the quote to avoid misunderstandings or disputes later on.

Example of quote

Here’s a short example of a quote in a business context:

Quote Number: Q2024-001

Date: February 21, 2024

Scope of work:

• Demolition and removal of existing structure
• Construction of a new residential building
• Installation of plumbing, electrical, and HVAC systems
• Interior finishing including flooring, painting, and fixtures

Total cost: R250,000

Terms:

• 50% deposit required upon acceptance of the quote
• Remaining balance due upon completion of the project
• Validity: This quote is valid until March 15, 2024

Contact information:

• John Doe, Project Manager
• Phone: 123-456-7890