How to Write a Sales Quotation: A Practical Guide
A quotation is a formal, itemised statement of what you will supply and what it will cost. Unlike a proposal, it doesn’t sell the idea, it pins down the numbers so the customer can approve them and you can be held to them. Get it right and ordering is easy; get it sloppy and you get disputes, rework and unpaid extras.
When to Use This
Use a quotation whenever a customer asks “how much?” for defined goods or services: product orders, standard service packages, repeat supplies, or the pricing section of a larger deal. If the customer needs convincing of the approach first, write a proposal; once they agree on what they want, the quotation makes it official. Always quote in writing, verbal prices are the number-one source of “but you said” arguments. Even a one-line email confirming the price is better than nothing, but a proper quotation looks professional and leaves no room for misunderstanding.
How to Fill It Out
Quotation number and dates. Give every quotation a unique number and show the date issued plus the date it expires. Example: “Quote QT-2026-118, issued 22 Oct 2026, valid until 21 Nov 2026.” A numbering system (QT-year-sequence) makes quotes easy to find later.
Customer details. Full name, company, and the address the quote is for, especially if delivery and billing addresses differ. Example: “Brightfield Logistics, Unit 4, 18 Harbor Road, delivery to Warehouse B, Northgate.”
Line items. List every item or service on its own line: description, quantity, unit price and line total. Be specific enough that there is no argument about what “the standard package” meant. Example: “Industrial floor scrubber, Model FS-40, Qty 2, $1,850 each, $3,700.”
Discounts and adjustments. Show discounts as their own line, not buried in the unit price. Example: “Volume discount (5% on orders over $5,000): −$310.” This keeps the maths transparent and protects your standard pricing from being quoted back at you later.
Taxes and delivery charges. Add tax and delivery/shipping as separate lines with the rates shown. Example: “Delivery to Northgate Warehouse B: $120. Tax (10%): $651.” If tax rules vary by location, check your local requirements rather than guessing.
Total. One clear total, unmissable, in the customer’s currency. This is the number they will approve internally, make sure it is the final number, not a subtotal that still needs extras added.
Payment terms. State when and how you expect to be paid. Example: “50% deposit on order confirmation, balance on delivery. Payment within 14 days of invoice.” If your terms changed since the last quote to this customer, point that out rather than letting them assume the old ones.
Acceptance instructions. Tell the customer exactly how to accept: sign and return, reply to the email, or approve the attached order form. Example: “To accept, reply to this email with ‘Accepted’ and we will confirm your delivery date within one working day.” Keep a copy of every accepted quote with the customer’s confirmation attached, if there’s ever a disagreement about what was agreed, that pair of documents settles it in minutes.
Common Mistakes
1. Vague line descriptions. “Services as discussed, $4,000” invites disputes. If it isn’t itemised, it isn’t quoted. Write each line so a stranger could understand what is being supplied.
2. Forgetting the expiry date. Costs move, materials, freight, your suppliers’ prices. A quote with no expiry can be accepted six months later at prices you can no longer honour. Thirty days is a sensible default for most businesses.
3. Leaving out delivery, installation or extras. Customers assume the total covers everything unless you say otherwise. If installation, training or delivery cost extra, list them or state clearly that they are excluded.
4. Sending the quote and never following up. Quotes don’t close themselves. Note the follow-up date in your tracker when you send the quote, and call when it arrives, most lost quotes are simply quotes nobody chased.
Who Needs to Sign Off
Internally, whoever is authorised to set prices should approve the quote before it goes out, usually the sales manager or business owner, especially if discounts are involved. Set a clear rule: for example, discounts up to 5% the salesperson can approve; anything more needs the manager. The customer accepts the quote (signing or replying as instructed), which then becomes the basis for the order or invoice.
How Often to Review and Update
Review your standard price lists and quote template at least quarterly, or whenever supplier costs change. Check expired quotes monthly: a polite follow-up call on an expired quote often revives a deal that simply went quiet. And whenever a quote turns into a dispute, review what was unclear in the wording and fix the template so it doesn’t happen again.
Download the free Sales Quotation Template.