Price quotation (quotation) is a document (generally written) which the seller provides to the buyer for offering goods and services at stated price subject to terms and conditions specified therein.
Price quotation is a fixed price that can’t be changed once accepted by the customer. Based on the relationship, mutual understanding between the parties, the final price had been discussed and agreed where the seller issue the price quotation as the result of the previous price discussion.
The quotation is generally a written document, though at times it is verbally discussed between the parties. This is generally on the letterhead of the seller with duly stamped and signed by the seller. It states the fixed price of the goods/services and any additional cost i.e. generally the additional cost may be in the nature of freight, VAT, etc. The additional cost if any is generally on the basis of actuals.
The quotation should also specify the period up to which the price stated in the price quotation is valid. The terms and conditions along with the details of the product/service form an integral part of quotations.
Once the quotation is accepted by the buyer, then a legal agreement is drawn duly executed by the buyer and the seller stating the price, validity, detail terms and conditions, terms for cancellation, an extension of the agreement, etc.
In the practical experience in a buyer Cambodia, also in accordance with the Financial Policy, a buyer Company might require at least 3 separate quotations from various sellers or suppliers. As sellers or suppliers, you surely know that your service/products and prices must be very competitive.
