Create Quotation (Engineering Sales)

A quotation will need to be revised a few rounds before the customer may accept.

Here are a few good practices to craft a quotation as close to the customer's needs as possible;

1) Technical requests from the customers have to be understood, for example;

i) Type of product the machine is expected to produce

ii) Production quantity per day

iii) Purchasing budget

iv) If training and site engineer is required

v) If additional spare parts are required

vi) If certifications specific to the industry is required

vii) Warranty and maintenance

2) When the above information is in place, provide reasonable pricing matched with machine ability that suits the needs. You may consider marking up 10% more to use it in negotiation to your last price.

3) Indicate the type of delivery terms;

i) Cost + Insurance + Freight cost (CIF)

ii) ExWork / ExFactory means collection from the factory

iii) Free On Board (FOB) means costs only covers freeloading onto the ship

iv) how many days are required to deliver the product

For more commonly used terms, click here!

4) Indicate the type of payment terms; typically;

i) Letter of Credit (LC) 30 days

ii) Customers may also pay by Cash, Cash in Advance, and installment

iii) If big reputable companies, we may provide payment after goods received

5) Keep in mind that the quotation process can repeat multiple times before the customer accepts and the actual payment is made. This will take quite a significant amount of time to craft, communicate, and align.

Tip

If you are unsure with any part of the quotation, always seek clarification with relevant department or people. Ask a manager to vet through. 

Never try to quote something you are unsure as this will incur huge losses for the company if managed wrongly.