A business or an organization is governed by certain rules and regulations. There are some standards that are adopted by each company. Tasks and functions among these organizations may be acted upon or completed differently depending on the cultural and legal frames. But there are few things that are common in all or most of organizations across the world.
A business or a company could be between a minimum of two people or could be expanded on a major scale. In any case, there will be a seller of products or services and a buyer of it. When these two identities are included, there comes a very strong and standard business process called “Bidding and Quotations”.
Bidding is carried out by a trader, investor or dealer to present an offer of suitable price in exchange for some service or product. It is done by analyzing the price, the investor will most likely pay and the product’s quantity he will purchase at that price. The receiving party may reject the proposal because bids are submitted in competition with other potential bidders. One’s proposal/offer may happen to be less satisfactory for receiving company. In that case, make a counter bid. The more flexible your bid is the more chances of your proposal being accepted.
A quotation is basically a figure or a formal contract generated by a supplier (usually on request for quotation) offering to sell material at a certain price, for a specified period of time to the potential customer. It holds certain conditions to be met. Usually, quotes are generated to let the customer know the prices of goods and services when they can be accurately estimated. It is submitted before the customer purchase goods.
Quotes come with a limited time frame, about a month in usual cases. So if the customer agrees to that price he must purchase the goods within that specified period of time. Outside that given period, prices of material may fluctuate. It is because the material prices change depending on supply and demand offers for example if the material is commodities involved in construction projects. In that case, quotes will certainly expire.