QUOTATIONS

A Quotation is a common practice of all business organizations before

placing an order. Quotations are given in two ways:

1. Inviting Quotation / Calling Quotation

2. Sending Quotation

After Inviting or Sending a Quotation any business organization places an

order. A quotation helps them in identifying the cheapest and best price for
supply of goods required.

Some of the points to be noted

(i) Details of goods required like shape, quality, size etc.

(ii) The seller should be asked to quote his price and terms of price.
(iii) The time-period in which the goods have to be supplied.
(iv) The period of guarantee or warranty should be asked.

Quotations are send in response to the letters inviting quotations.

Following points should be kept in sending the quotations.

(i) Terms of Payment

(ii) Place and time of delivery
(iii) Transport facility (if any)
(iv) Extra payment for sales tax, insurance, packaging etc.

Once the Quotations are sent, the choice of placing the order lies with the
firm, which receives the quotations
 INVITING/CALLING QUOTATION

Shri DJ Institute of Technology

23/B Civil lines
Bangalore

5 August 2012

Ref No: 43/ab

The Sales Executive

Eastern Laboratories Ltd.
Bangalore

Dear Sir,
Sub:

We wish to buy the following instruments for our chemistry laboratory. We should
be grateful if you would quote your latest rates for these instruments along with
their technical details. The quantity we wish to purchase is quoted against each item.

Instruments Quantity

Conical Flask 050

Test Tube 150
Burettes 070
Pipettes 070
Electronic balance 002
Distillation flask 003

We wish to set up laboratory by first week of October. We would therefore, like the
instruments to be delivered to us by 15 September 2012.

Please also inform us about the guarantee period and any other sales facility offered
by you. We look forward to hearing from you soon.

Thanking You,

Yours faithfully
O.P Rai
Purchase Officer

SENDING QUOTATIONS
Eastern Laboratories Ltd.
28/1, Nehru Road,
Bangalore

8 August 2012

Our Ref No: 22/AL

Your Ref No: 43/ ab

The Purchase Officer

Shri DJ Institute of Technology
23/B Civil lines
Bangalore

Dear Sir,

We have pleasure in submitting the following quotations for your considerations.

The prices for the below mentioned commodities will remain valid for six months.

S.No. Instruments Price. Per Instrument

1. Conical Flask Rs 10
2. Test Tubes Rs 07
3. Burettes Rs 25
4. Pipettes Rs 25
5. Heater Rs 940
6. Electronic balance Rs 1050
7. Distillation flask Rs 520
Sales Tax 12%
Transportation 02%

Packaging charges and other duties and taxes are included in the prices quoted
above. All the instruments are guaranteed for two years. Repair facility is available
during this period.

We would like you to make an advancement of about 25% of the total amount. We
will be grateful to you if you can make the payment by crossed cheque drawn on the
State Bank of India. We look forward to receiving your order soon.

Yours faithfully
N.V. Reddy
Sales Executive

PLACING THE ORDER

Shri DJ Institute of Technology
23/B Civil lines
Bangalore

13 August 2012

Ref No: 43/ab

The Sales Executive

Eastern laboratories Ltd.
Bangalore

Dear Sir,

Thank you for your letter No. 22/AL dated 8 August, 2012
We are pleased to place an order for the following instruments on the terms and
conditions agreed upon. Please send the instruments duly insured and include the
extra charges in your bill.

S.No. Instruments Price. Per Instrument

1. Conical Flask Rs 10
2. Test Tubes Rs 07
3. Burettes Rs 25
4. Pipettes Rs 25
5. Heater Rs 940
6. Electronic balance Rs 1050
7. Distillation flask Rs 520

We are enclosing a crossed cheque of Rs 1200 which means 25% of total payment.
We shall make the remaining payment by crossed cheque after the receipt of
instruments.

We wish to set up laboratory by first week of October. We would therefore, like the
instruments to be delivered to us by 15 September 2012.

Yours faithfully

O.P. Rai
Purchase officer