Quotation Letter Format – Key Components and Structure
| Type of Quotation Letter | When Used | Key Details Included |
|---|---|---|
| Product Quotation | Buying materials or items in bulk | Names, quantity, price per item, GST/tax, validity |
| Service Quotation | Hiring a service provider/agency | Description of service, rate, period, terms |
| Construction Quotation | Building/renovation projects | Materials list, labor charges, total estimate, warranty |
| Digital/IT Quotation | IT hardware/software purchases | Specifications, licenses, support period, offer terms |
What is a Quotation Letter?
A quotation letter in English is a formal letter sent by a seller or service provider to share the price and terms for goods or services requested by a customer. In school exams and business, it helps compare offers and make informed choices. At Vedantu, we help you master this format for both academic and practical needs.
Quotation Letter Format
Every quotation letter follows a clear format to look professional and be accepted in exams or by businesses. Include these main parts for clarity:
- Sender’s address and date
- Receiver’s address
- Subject line (quotation for …)
- Formal greeting (Dear Sir/Madam, or by name)
- Body: Item/service details, price, quantity, terms, validity
- Polite closing (Sincerely, Regards, etc.)
- Signature and sender’s name + position
Quotation Letter Examples
Here are short examples to guide your exam or real-world writing practice. Adjust the details according to your situation.
- Product Quotation
Subject: Quotation for Supply of Notebook Paper
Dear Sir,
As requested, please find below the prices for 500 reams of A4 notebook paper. Each ream costs ₹200 plus 12% GST. The quoted rates are valid for 30 days from the date of this letter.
Sincerely,
Ashok Sharma
Sales Executive, PaperMart LLP - Service Quotation
Subject: Quotation for Annual School Bus Service
Dear Principal,
We offer school bus service at ₹1,800 per student per month for academic year 2024–25, GST included. Rate is fixed for up to 40 students; discounts available for larger groups.
Regards,
Prachi Verma
Manager, City Transport Co.
Tips to Write a Good Quotation Letter
- Always keep your language formal and polite
- Cite details clearly: quantities, rates, and any clauses
- Mention the validity of prices (e.g., “valid for 15 days”)
- Attach extra documentation if needed (price list, terms sheet)
- Proofread for grammar and accuracy before sending
Difference Between Quotation Letter and Other Letters
| Letter Type | Main Purpose | When Used |
|---|---|---|
| Quotation Letter | Offer prices and terms for products/services | Reply to price enquiry or sales request |
| Tender Letter | Submit competitive bid for large contracts | In response to public ‘tender notice’ |
| Order Letter | Place an order after approving quotation | When ready to purchase |
| Enquiry Letter | Request product details or quotation | At the start of a purchase process |
Page Summary
A quotation letter is essential for formal price communication in school, exams, and business. It has a set format, is used for products or services, and helps compare costs and terms. Mastering this skill helps students write confidently and respond correctly in academic and practical settings.
For other formal writing formats, see Formal Letter and Letter Writing on Vedantu.
FAQs on Quotation Letter: Meaning, Format, and Samples
1. What is a quotation letter?
A quotation letter, also known as a price quotation or quote, is a formal business document that provides a detailed breakdown of the cost for goods or services. It's typically sent in response to a customer's request for quotation (RFQ). It's used to clarify pricing, terms, and conditions before a sale is finalized.
2. What should be included in a quotation letter?
A complete quotation letter includes: * Your company's contact information (address, phone number, email) * The date * The recipient's contact information * A clear subject line (e.g., "Quotation for Project X") * A professional salutation (e.g., "Dear Mr./Ms. [Client Name]") * A detailed description of the goods or services being offered * Itemized pricing, including quantities and unit costs * Any applicable taxes or fees * Payment terms (e.g., payment due upon receipt, net 30 days) * Delivery or completion timelines * Validity period of the quotation * A professional closing (e.g., "Sincerely,") * Your signature and printed name
3. What is the difference between a quotation letter and a tender letter?
A quotation letter is a response to a specific request for pricing information. A tender letter is a formal bid submitted in response to a publicly advertised request for proposals (RFP) or invitation to tender (ITT). Tenders often involve a more competitive process and are usually more detailed than quotations.
4. How do I write a quotation letter for services?
Writing a quotation for services is similar to writing one for products. Clearly define the services being offered, the scope of work, hourly rates or project fees, any expenses included, payment milestones, and a projected completion timeline. Ensure all terms are clearly stated.
5. What is the correct format of a quotation letter?
The format follows a standard business letter structure. Key elements include a professional header, clear addressing, a specific subject line, a concise and informative body, and a professional closing. Maintain a formal tone throughout.
6. Are quotation letters legally binding?
Quotation letters are generally not legally binding contracts unless they explicitly state that they are an offer with clear terms of acceptance. Acceptance, usually in writing, transforms a quotation into a binding agreement.
7. How do I politely reject a quotation offer?
Maintain professionalism. Thank the provider for their time and submission. Clearly state that you will not be proceeding with their offer, providing a brief, non-committal explanation if appropriate. Keep communication open for future opportunities.
8. What is the validity period of a quotation letter?
The validity period should always be clearly specified in the quotation letter. It indicates how long the prices and terms remain valid. This encourages timely responses from the client and prevents misunderstandings about pricing changes.
9. Can I send a quotation letter via email?
Yes, email is a perfectly acceptable method for sending quotations. Maintain professionalism and structure; use a clear subject line and appropriate formatting to enhance readability.
10. What are common mistakes to avoid in quotation letters?
Avoid vague descriptions, incomplete information (missing prices, terms), unprofessional language, and grammatical errors. Always double-check for accuracy before sending.
11. How do I write a quotation letter for a product?
Clearly state the product details (model number, specifications), quantity, unit price, total cost, and applicable taxes. Include delivery information and payment terms. Use a professional and clear format.
12. What is the difference between a quotation and an estimate?
While often used interchangeably, a quotation is a fixed price offer, while an estimate is an approximation of the cost. Quotations are generally more formal and binding than estimates.
