The manufacturers of products are the seller of the products. A quotation is a business offer made by a seller for the interested buyer who wants to buy the certain goods at specific prices and on certain terms and conditions. The seller of the products always likes to offer better opportunity for his buyer. This the mutual agreement on which the dealing is completed. The seller always bound to fulfill the demand of the buyer. If the buyer faces any difficulties with the products they can complain to the seller.
Types of Quotation for Exporting Products: During pricing a products following quotation is considered. They are-
- LOCO: LOCO is the lowest quotation price. LOCO means on the spot. LOCO means that the buyer will carry his product form the seller godown to his or her factory or warehouse. All the carrying expenses are beared by the buyer.
- F.A.S: Free Along Side Ship (FAS) determines that the seller will bear the carrying expenses from the seller godown to the ship and the buyer will give the expenses from the ship loading to the buyer godown.
- F.O.W: Free On Wagon (FOW) determine that the seller will bear the expenses from the godown to the nearest railway station rest carrying will be done by the buyer.
- F.O.B: Free On Board (FOB) determines that the seller will bear all the expenses which required reaching the products in the board of ship at the port of shipment. Product loading expenses also carried by the seller.
- C&F: Cost and Freight (C&F) determines that the seller will bear all the expense which is required to send the goods from the seller godown to the buyer godown. Seller will not bear the insurance cost in this quotation.
- C.I.F: Cost Insurance and Freight (CIF) means that the seller will bear all the carrying cost and insurance charge of the product during caring the products from the seller godown to the buyer godown.
- C.I.F.E: Cost, Insurance, Freight and Exchange (CIFE) determines that manufacturing cost, insurance charge, carrying cost and exchange cost will be include in product price.
- C.W.O: Cash With Order (CWO) determines that the buyer of the product will send money along with the order. Order will not be executed without receiving with the order.
- C.O.D: Cash On Delivery (COD) determines that the buyer will pay cash after receiving the desired products to the desired destination which is ordered by him.
- FRANCO: In this quotation, the seller bears all expenses up to the buyer’s warehouse.
- F.O.R: Free On Rail (FOR) determine that the seller will bear all the expenses from the seller godown to the railway station. Seller also bears the loading cost. Rest expenses will bear by the buyer.
So, there is lots of quotation. One can easily understand the meaning of quotation if one can get clear idea about quotation.