GUIDE FOR DISTRIBUTORS AND WHOLESALERS
How to write a quote: fields, example and mistakes
A quote (or quotation) is a written offer to supply specific goods or services at a stated price and on stated terms, valid for a limited time. A good quote lets the customer say yes without asking you a single follow-up question.
This guide is written for people who quote products for a living: counter staff, inside sales and owners at distributors, wholesalers and trade counters. It covers the fields every quote needs, a step-by-step method, a worked example with the arithmetic checked, how long a quote should stay valid, and the mistakes that cost sales or margin. A free Excel quote template is linked at the end if you want to start from a ready-made layout.
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What a quote is, and what it is not
A quote answers a customer’s question: “what would it cost me to buy these things from you, and on what terms?” It is specific. It lists exact items, quantities and prices, and it says how long those prices hold. Because it is specific, the customer can accept it, and when they do, the quote normally becomes the basis of the sale.
It is different from an estimate, which is an approximate figure that may change, and from an invoice, which asks for payment after the sale. If you are unsure which one you are sending, read the guides on quote versus estimate and quote versus invoice linked below. In the UK, Ireland and Australia the same document is as likely to be called a quotation or a quote; in the United States, “quote” is the usual word.
The fields every quote needs
These are the fields a distributor’s quote should carry. The right-hand column is the trap that each one most often hides.
| Field | What to put | The usual trap |
|---|---|---|
| Your details | Company name, address, phone, email, and any tax or registration number required on commercial documents where you operate | Leaving out the contact that can answer questions |
| Quote number | A unique, sequential number | Reusing a number, or editing a sent quote without a new revision number |
| Date and valid-until date | The day you issued the quote and the last day the prices hold | No end date, so the price is open-ended |
| Customer | Company, contact, billing address, account number, price tier | Quoting a tier the customer is not on |
| Customer reference | Their RFQ number, job name or PO number if known | Not quoting their reference, so their system cannot match your reply |
| Ship-to | Delivery address or “customer pickup at branch” | Assuming delivery when the customer expects pickup |
| Line items | Part number, description, quantity, unit of measure, unit price, line total | Mixing “each” with “per 100” or per foot |
| Availability | In stock, or lead time per line | Quoting an out-of-stock item as if it were on the shelf |
| Substitutes | Alternates, on their own lines and labeled as alternates | Swapping an item without telling the customer |
| Discounts | Tier, quantity break or order-level discount, shown | Hiding the discount, so the customer cannot see the value |
| Freight and handling | Flat charge, at cost, or free above a threshold | Leaving freight out and absorbing it later |
| Tax | Tax rate and what it applies to, or “exempt” with the reason | Applying the wrong rate, or taxing a customer who is exempt |
| Total | Goods plus freight plus tax | A total that does not equal the sum of the lines |
| Terms | Payment terms, delivery terms, returns policy | Terms that differ from the customer’s account terms |
| Notes and exclusions | What is not included, assumptions, minimum order | Unstated assumptions that cause disputes later |
| How to accept | “Send a purchase order referencing quote Q-0000 by [date]” | Making the customer guess the next step |
How to write a quote, step by step
- Confirm what is being asked. Read the whole request. Note every question you need answered, such as an ambiguous size or a missing delivery date, before you start pricing.
- Identify the customer and their price level. The price depends on who is asking: the account, the tier, any contract prices.
- Find every item and its unit of measure. Match each line to your catalogue with a part number. Check whether the customer means each, a box or a coil.
- Check stock and lead time. For each line, decide: in stock, available by a date, or needs an alternate.
- Price each line. Take the tier price, apply the quantity break, apply any contract price, and check the margin against your floor.
- Add freight, handling and tax according to your rules and the customer’s status.
- State the terms: payment terms, delivery terms, the valid-until date and anything excluded.
- Review before sending. Check the units, the totals and the customer’s name. A second pair of eyes on a large quote is cheap insurance.
- Send it the way the customer works, then record it and follow up. A quote that sits unanswered is a lead going cold.
Worked example: a plumbing supply quote
A mechanical contractor sends a short list for a job. The quote below prices it with the customer’s tier prices, adds a flat freight charge and applies a sample sales tax rate to the goods.
What the contractor sends
- 24 brass ball valves 3/4 in
- 150 copper elbows 3/4 in, 90°
- 4 coils PEX-A 3/4 in x 300 ft
- 200 pipe hangers 3/4 in
- Deliver to the job site
The quote, ready to check
| Description / part no. | Qty | Unit price | Line total |
|---|---|---|---|
| Brass ball valve 3/4 in — BV-075 | 24 | $9.20 | $220.80 |
| Copper elbow 3/4 in, 90° — CE-075 | 150 | $0.85 | $127.50 |
| PEX-A tubing 3/4 in, 300 ft coil — PXA-075-300 | 4 | $142.00 | $568.00 |
| Pipe hanger 3/4 in — PH-075 | 200 | $0.31 | $62.00 |
| Freight, flat rate (sample) | 1 | $35.00 | $35.00 |
| Sales tax 6.5% on goods (sample rate) | – | – | $63.59 |
| Total (sample) | $1,076.89 | ||
Illustration with sample products, prices and tax rate. Goods: $220.80 + $127.50 + $568.00 + $62.00 = $978.30. Tax: $978.30 × 0.065 = $63.59 (rounded from $63.5895). Total: $978.30 + $35.00 + $63.59 = $1,076.89. Tax rules and rates depend on where you operate and who the customer is. In your own account, part numbers and prices come from your catalogue and your price rules, and a person on your team reviews the quote before it is sent.
Under the table, a complete quote would add the lines the table cannot hold: “All items in stock; delivery within two business days. Prices valid for 14 days from the date of this quote. Payment terms net 30 on approved account. To accept, reply with your purchase order referencing this quote number.”
How long should a quote be valid?
There is no universal answer, because the right period depends on how quickly your costs move. The principle is to hold the price only as long as you can afford to.
- For goods whose cost follows a volatile market, such as copper wire or steel, a short window of a few days to two weeks protects your margin.
- For stable catalogue goods, 30 days is a common choice because it matches a typical buying cycle.
- For large or project quotes with long lead times, state the validity separately from the delivery date, and say whether the price is held for scheduled releases.
Whatever you choose, print the date, not “30 days”. A date cannot be misread. Add a line such as “Prices subject to change if supplier costs change materially” if your terms allow it, and check how it fits your own terms of sale.
Common mistakes when writing a quote
- Leaving off the valid-until date.
- Not stating the unit of measure, so 200 means 200 pieces to you and 200 boxes to the customer.
- Quoting the wrong price tier, or last quarter’s price list.
- Mixing substitutes into the main lines without labeling them.
- Forgetting freight, fuel surcharges, minimum order charges or handling.
- Totals that do not match the lines, because a line was edited after the sum was typed.
- No quote number or reference, so the customer’s reply cannot be matched.
- Sending a quote late. Speed matters: the customer may already have decided.
- Sending without review. A single wrong digit on a large line is a margin loss or an awkward call.
Checklist: before you press send
- Your details, the quote number, the issue date and the valid-until date are on it.
- The customer’s name, reference and ship-to are correct.
- Every line has a part number, a unit of measure, a quantity, a unit price and a line total.
- Out-of-stock lines show a lead time, and substitutes are labeled.
- The tier, discounts and quantity breaks are the ones this customer should get.
- Freight, handling and tax are included or stated as excluded.
- The total equals the sum of the lines plus freight plus tax.
- Payment terms, delivery terms and how to accept are stated.
Where a quoting tool helps
The fields above do not change from one quote to the next. What changes is the request, and the work of turning a customer’s list into correct lines. For a long request that means dozens of lookups, tier prices and totals, each a chance for an error.
Qotora AI takes that work on. The request is dropped in as it arrived, whether an email, a PDF, an Excel file, a photo of a handwritten list, a text message or a voice note. Qotora finds each line in your own catalogue, applies your own price rules and customer tiers, and, when a line is unclear, asks a precise question instead of substituting. Every price traces back to your own data. Your team reviews the quote and decides what is sent; nothing leaves without approval.
Frequently asked questions
What should be included in a quote?
A quote should include your business details, a quote number, the issue date and valid-until date, the customer’s details and reference, itemized lines with part number, quantity, unit of measure, unit price and line total, availability, freight and tax, the total, payment and delivery terms, and how to accept it.
How do I write a quote for a customer?
Confirm what is being asked, identify the customer’s price level, match each item to your catalogue, check stock, price each line, add freight and tax, state the terms and validity, review the quote and send it in the format the customer uses.
How long is a quote valid?
It is your choice and should be stated on the quote as a date. Short windows suit goods whose costs move fast; around 30 days is common for stable catalogue items. Choose a period you can honor without hurting your margin.
Is a quote legally binding?
A quote is generally an offer, and if the customer accepts it within its validity period, it can become binding on the stated terms. The exact effect depends on the country and your terms of sale, so check with a lawyer about a particular case.
What is the difference between a quote and an estimate?
A quote is a specific offer at a stated price, valid for a period. An estimate is an approximate figure that may change. For a distributor pricing defined items, a quote is almost always the right document.
Should I charge for a quote?
Distributors normally quote standard catalogue items for free, because the quote is part of selling. Charging may make sense for custom or engineered quotes that need real design time. It is a business decision, and it should be stated before you start.
Can I write a quote in Excel?
Yes. Many distributors do. A spreadsheet with working formulas for line totals, discounts, freight, tax and total works well for low volumes. The free Excel template linked on this page is one example.