Quote
Also called quotation
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is quote?
A quote is a distributor’s written offer to sell specific items, in specific quantities, at stated prices, with availability, lead time and an expiry date. If the customer accepts, the quote is converted into a sales order.
How it works
Distributors track how many quotes turn into orders, called the quote conversion rate or hit rate: quotes won divided by quotes sent, counted by number or by dollar value. Open quotes that get no reply are followed up before they expire or the customer buys elsewhere.
Quote example
A rep quotes 200 LED fixtures at $42 each, valid for 30 days, with a two-week lead time. The customer accepts on day 12, and the quote converts to an order without anyone retyping a line.
Further reading
Related terms
- Request for quote (RFQ)A request for quote (RFQ) is a customer’s request for prices and availability on a specific list of items and quantities.
- Sales orderA sales order is the distributor’s own record of a customer order in its ERP, listing the items, quantities, prices, ship-to address and delivery terms.
- Purchase order (PO)A purchase order (PO) is a buyer’s document ordering specific items, in specific quantities and at stated prices, from a supplier.
- Quantity break pricingQuantity break pricing gives a lower unit price when a customer buys more of an item at once, with the price changing at set quantities called breaks.
- Configure, price, quote (CPQ)Configure, price, quote (CPQ) is software that builds accurate quotes for products with many options, by guiding configuration and applying pricing rules.
