The manufacturers of products are the seller 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 buyer. This is the mutual agreement with the concern of both of them. The seller is always trying 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:
Export is the one way to get foreign currency. When a manufacturer produces a product he or she must consider the quotation types. In fact, price quotation impacts profit margin. Shortly, a better price quotation can give better profit. During pricing, different points take into concern. They are-
- LOCO: LOCO is the lowest quotation price. LOCO means on the spot. Also, LOCO means that the buyer will carry his product form the seller godown to his or her factory or warehouse. The buyer bear all the carrying expenses.
- 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.
- F.O.W: Free On Wagon (FOW) refers 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 obviously . Product loading expenses also carried by the seller.
- C&F: Cost and Freight (C&F) refers that the seller will bear all the expense which is required to send the goods from the seller godown to the buyer godown. In addition, 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) means that manufacturing cost, insurance charge, carrying cost and exchange cost will be include in product price .
- C.W.O: Cash With Order (CWO) means that the buyer of the product will send money along with the order. So, order will not be executed without receiving cash 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) means that the seller will bear all the expenses from the seller godown to the railway station. Seller also bears the loading cost. where rest expenses will bear by the buyer.
Above all, there is lots of price quotation type. One can easily understand the meaning of a quotation if one reads and get a clear idea about the quotation.
Finally, a Price quotation will give desired profit if one can determine it properly.