7 Reasons Why Quotation is Vital for SME Businesses
Quotation in small and medium businesses (SME) is needed for a lot of reasons. Some may not see its importance during the startup yet but as a business trying to build your brand, you have to make sure that both your suppliers and customers get the information they deserve during a business transaction. To give you an idea of what quotation is, this is a document containing all the information about the products and services you are trying to sell or buy. This is typically shown before a sales transaction. If you are acting as a buyer, you should be able to receive a quotation from the vendor before you made an order. If you are the seller, your customers deserve to get a quotation from you so they can decide whether to push through with the transaction or not.
So, is quotation really important for SME businesses? Yes! And here are the 7 common reasons why.
1) It gives your customers a hint of your prices.
First and foremost, there are people who get interested to buy products and services from you just by seeing your advertisement. You will likely get requests for quotations once your prospective customers are done checking what benefits they can obtain from your offer. As part of its importance, quotations will give your customers an idea of the price of your offers. It will help you tell people how much you are expecting them to pay. Your quotation document somehow serves as a form of communication so you can show your customers how you price each and every product and service on your list.
2) It helps you decide whether you should get the offer or not.
This is a different perspective because you are acting as the buyer under this scenario. Quotations will help you decide whether you should push through with the offer of the vendor of not. Since this document gives you a hint of the prices of the items you are going to buy, it contributes a lot to your decisions especially if you are trying to spend on a budget.
3) It helps you track potential sales.
Sending quotations to your buyers is not considered as sales, yes, but it does help you track your prospective customers. Sending quotations is like your chance to talk to your prospects and negotiate with them. It's your gateway to engage them in a conversation and eventually turn your leads into successful sales. Tracking your potential sales is important so you can also assess the rate of your conversation if you are just starting out in the business.
4) It helps you find the best offers.
As a buyer, you can get as many quotes as you want from different sellers or vendors. You can use the quotation documents to compare the offers and eventually land on the best choice. This is necessary especially for SMEs because you need to be keen on choosing the right vendor for you. If you have a budget you only need to spend on your inventories, quotations can also help you find the best deals so that you wouldn't have to increase your expenditures.
5) It serves as your sales pitch
Quotations serve as your sales pitch as a seller. How? By sending your quotations to your potential buyers, you are trying to offer them the best packages you have. They click the "Request for quotation" button for a reason and you can turn that reason into a sales. So, when giving your quotations, make sure to emphasize your offers with discounts so your customers can have more options.
6) It's a form of a record.
Quotation documents are also a form of records. Tracking the number of the quotations you sent will give you an idea of the number of leads you have. You have a track record of the people who are interested to buy your products and services. With this, you can create an analysis related to your marketing strategy and conversion techniques.
7) It helps you manage your expectations.
Receiving quotations from different vendors will also help you manage your expectations. If the quotation document has expensive prices, then you can expect to spend more on the preferred products you want to sell.