Types Of Price Quotation For Exporting Products

What is price quotation?

The manufacturers of products are the sellers of the products. This manufacturer makes a quotation as well as a business offer for the interest of the buyer, who wants to buy certain goods at specific prices and on certain terms and conditions. The seller of the products always likes to offer better opportunities for his buyers. This is a mutual agreement that addresses the concerns of both of them. The seller is always trying to fulfill the demands of the buyer. If the buyer faces any difficulties with the products, they can complain to the seller.

Types of Quotation for Exporting Products

Exporting is one way to get foreign currency. When a manufacturer produces a product, he or she must consider the quotation types. In fact, price quotations impact profit margins. Shortly, a better price quotation can give a better profit. During pricing, different points are taken into consideration. They are-

1. LOCO: LOCO is the lowest quotation price. LOCO means on the spot. Also, LOCO means that the buyer will carry his or her product from the seller’s godown to his or her factory or warehouse. The buyer bears all the carrying expenses.
2. F.A.S: Free Along Side Ship (FAS) determines that the seller will bear the carrying expenses from the seller godown to the ship as well as the buyer will give the expenses from the ship loading to the buyer godown.
3. F.O.W: Free on Wagon (FOW) refers to the fact that the seller will bear the expenses from the godown to the nearest railway station rest carrying will be done by the buyer.
4. F.O.B: Free on Board (FOB) determines that the seller will bear all the expenses that require reaching the products on the ship’s board at the port of shipment. Product loading expenses are also carried by the seller.
5. C&F: Cost and Freight (C&F) refers to the fact that the seller will bear all the expenses that are required to send the goods from the seller godown to the buyer godown. In addition, the seller will not bear the insurance costs in this quotation.
6. C.I.F: Cost Insurance and Freight (CIF) means that the seller will bear all the carrying costs and insurance charges of the product while caring for it from the seller godown to the buyer godown.
7. C.I.F.E: Cost, Insurance, Freight, and Exchange (CIFE) means that manufacturing costs, insurance charges, carrying costs, and exchange costs will be included in the product price.
8. C.W.O: Cash With Order (CWO) means that the buyer of the product will send money along with the order. So, the order will not be executed without receiving cash with it.
9. 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.
10. FRANCO: In this quotation, the seller bears all expenses up to the buyer’s warehouse.
11. F.O.R: Free on Rail (FOR) means that the seller will bear all the expenses from the seller godown to the railway station. The seller also bears the loading cost, while the rest of the expenses will be borne by the buyer.

Above all, there are lots of price quotation types. One can easily understand the meaning of a quotation if one reads it and gets a clear idea about it. Besides this, different garment cost factors also need to be considered.

Finally, a price quotation will give the desired profit if one can determine it properly.