GlossaryKind of term: Cost and economicsQuote
What is a quote?
A quote is your written offer to the customer: price per piece at each quantity, lead time, validity and conditions, for a stated drawing revision.
A quote is the offer you send in answer to a request. Per part it states the price per piece at each quantity asked for, the lead time, how long the offer stands and the conditions the price rests on, such as delivery terms, payment terms and the terms and conditions you refer to. Each part is listed with the drawing revision you priced and with the assumptions: who supplies the material, which certificates and inspection reports are included, which finishing is in the price. Under Dutch law a quote is usually an offer, so the customer's acceptance forms the contract; under English law a quotation may be only an invitation to treat, depending on its wording.
How does a quote work in practice?
A well-founded price on a quote rests on an estimate: material, machining, finishing, setup and programming, per quantity. That build-up usually stays in-house; the customer sees the price and the conditions. When the customer later asks whether another quantity can be cheaper, the build-up gives the answer: which costs were one-off and which were per piece. Quoting against the wrong revision can be costly: an extra ⌀12 H7 bore on rev D is not in the price of rev C. So record per part which revision and which assumptions the price rests on, and state open points as qualifications.
What is a quote often confused with?
A quote is not an estimate: the estimate is your internal cost calculation, the quote the offer the customer receives. Nor is it a budgetary price, which gives an order of magnitude without a binding offer, often before all the data are in. And a quote is not an order: the contract only arises when the customer accepts.
How do you see a quote in Blake?
In Blake each part's estimate is calculated per quantity break, with material, machining, finishing, setup and programming as separate lines, per piece and per batch. Each quote version is saved as its own PDF and can be exported to CSV and JSON. The result is labelled as an estimate. More on estimating.
Frequently asked questions
How long does a quote stay valid?
For the period stated on the quote. Without a stated period, Dutch law lets a written offer lapse if it is not accepted within a reasonable time; other legal systems have their own rules. A fixed period on the quote avoids that argument.
Does the drawing revision have to be on the quote?
No law requires it, but it is sound practice. The price holds for that revision and that quantity. If the customer later sends a new revision with an extra bore or a tighter tolerance, that calls for a new estimate and a new quote version.
Can I change a quote after sending it?
Send the change as a new quote version. Whether the first version can still be accepted depends on the governing law and the wording: under Dutch law an offer with a term for acceptance is in principle irrevocable within that term, unless made without obligation.