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How to Write a Price Quotation

A quotation is often the first formal document a client sees from you -- here is how to make it clear and professional.

  1. Fill in supplier and recipient details

    Enter the supplier's business name, registration details, and contact person, along with accurate details for the recipient (the client).

  2. Add a quote number, issue date, and validity period

    Assign a unique reference number for tracking, show the issue date, and state how long the quoted price remains valid.

  3. Itemize pricing by line item

    List each item name, specification, quantity, unit price, and subtotal in a table so everything can be compared at a glance.

  4. Calculate tax and the final total

    Add the applicable sales tax or VAT for your region on top of the subtotal, and clearly display the final total.

  5. Spell out payment terms and delivery date

    State the payment terms (such as a deposit and balance split) along with the expected delivery or completion date.

  6. Sign or stamp it, then send

    Add a signature or official stamp, send it by email or post, and keep a copy for your own records.

A quotation is often the first document that builds trust

For many clients, a quotation is the first official document they receive before a deal even begins, so accuracy and a clean layout matter a great deal. Organize items and amounts clearly in a table, and make sure you never omit the validity period or the payment terms -- doing so avoids misunderstandings later.

Keep records once a quote turns into a deal

When a client accepts your quote and the transaction moves forward, keep a dated copy of both the original quote and any revised versions. If pricing or scope changes during negotiation, issue an updated quote rather than relying on verbal agreements, so both sides have a clear paper trail to refer back to.

Frequently Asked Questions

Do I always need to include tax on a quotation?

In most places it is standard to separate the pre-tax subtotal from the applicable sales tax or VAT, and clearly state whether the quoted price is tax-inclusive or tax-exclusive to avoid confusion with the client.

How is a quotation different from an invoice?

A quotation proposes an expected price before a deal is finalized, while an invoice is the formal accounting document issued after the transaction is complete, generally required for tax or bookkeeping purposes -- that is the key difference.