WAC Presentation on Quotations Estimates and Tenders Group III ANOOP CHAND CHETNA SINGHAL SHUBHAM SAMDANI EASWARAMURTHI P SUTAPA MISHRA VAIBHAV GARG V S R PRAVEEN
Dec 22, 2015
WAC Presentation on
Quotations Estimates and Tenders
Group IIIANOOP CHAND
CHETNA SINGHALSHUBHAM SAMDANI EASWARAMURTHI P
SUTAPA MISHRAVAIBHAV GARGV S R PRAVEEN
Modern. Effective. Persuasive
QuotationsFixed price
offer
EstimatesEducated Guess
TendersOpen Invitation
L1 Bidder
Why go for Quotation or Estimate ?
• It's impossible for some businesses to give standard prices for goods and services.
• This may be because the skills, time and materials required for each job vary depending on different customers' needs.
• E.g.., Decorators or builders
QUOTATION ESTIMATE
It is a fixed price offer that can't be changed once accepted by the customer
It is an educated guess at what a job may cost- but it isn't binding
This holds true even if you have to carry out much more work than you expected
It does not hold true if you have to carry out much more work than you expected
You can also specify in the quotation precisely what it covers, and that variations outside of this will be subject to additional charges.
This will prevent your customer from being surprised by the costs
How to work out quotation and estimates?
Know your fixed and variable costs.
Provide it in writing and include a detailed breakdown
State clearly whether it is a quotation or an estimate
Set an expiry date. It will no longer be valid after this time
A Written QuotationBasically you can divide the quotation into 3 main parts : The Header, Body and Footer. •Quotation Header (Top Part)1. Your letterhead2. The words “Quotation”, “Quote” or your preferred term clearly written
towards the top of the page.3. If you are registered to bill and collect tax, you may also need to
include your Tax Registration Number. This can usually be indicated just below the words “Quotation” or at your letterhead.
4. The Quotation Number. This a running serial number that you maintain. You should only have one number per quotation issued.
5. The Quotation Date.6. Your Payment Terms or how soon you expect to be paid. Some example
include : “COD”, “Cash”, “Cash on Delivery”, ”30 days”, “Full Payment on Delivery”, “50% To Start, balance on completion “. The payment terms can also be placed on the footer if preferred.
7. Your Customer or Client Name and Address.
Quotation Body (Middle Part)
A description of the goods you are supplying, quantity, unit of measure, price per unit and total amount for individual items. In the case of services, your scope of work and amount for individual items.
Quotation Footer (Bottom)
1. Total Amount of all individual items.2. If applicable, a tax amount and total after tax.3. Validity of the Quote. For example ”This quote is valid for 60 days”4. Other comments you may have like delivery instructions, goods
return policy, overdue payment policy etc. 5. Your business authorised signature if necessary6. Options for customer to sign and stamp if your quote is accepted (this is
optional)
EstimateAn estimate is an educated guess at what a job may cost - but it isn't
binding
Factors Affecting the Decision to Make Estimates
Hence estimate should include the following:
• overall price• breakdown, listing the components of the price• schedule, detailing when work will be done or products
delivered• terms and conditions• time period the estimate is valid for• payment terms or schedule
A Sample Estimate
Estimate for Car Repair Dear Mr. Easwar,
Thank you for allowing us the opportunity to serve your car. We are willing to act upon your requirements, but reserve the right to review the pricing structure.
We are pleased to submit the following estimate:
Brake pads – Rs.150 Brake shoes – Rs. 130Labour cost – Rs.150
The estimated prices are for the services and the spare parts delivered in accordance with the project's timetable. Plus any state applicable taxes are included in our pricing proposal.
Our credit terms are 20% percent in advance and 80% percent upon delivery.
Please feel free to get in touch with me at 7503139*** about any of the specifics of this estimate. Again, thank you for considering Sai Service Auto Parts for your service.
Best Regards,Vaibhav GargSai Service Auto Parts
TendersIf you provide goods or services to other businesses or the public sector, you may have to compete for contracts by submitting a tender.
Tenders by Classification
• Empanelment/Registration• Auction• Buy• Sell• Work Contract• Service Contract
Factors to be considered
• Life time cost initial purchase cost + maintenance costs +
downtime costs + the cost of consumables and disposal.
• Optimal level of bidding:Don’t bid too high or too low
• Customer point of view