Quotation Letter Format: Sample Wording You Can Use
Quotation letter format with sample wording for goods and services: structure, pricing table, terms, validity, a full example letter and an email version.
A quotation letter format is the layout of a formal business letter that offers prices for goods or services in reply to a customer's inquiry. It combines a short covering letter with a clear pricing table and the key terms: tax, delivery, payment, validity and how to accept. Done well, it fits on one page and gives the buyer everything they need to say yes.
This guide walks through the structure, gives sample wording you can adapt for each section, shows a complete example letter, and includes a shorter email version.
When to use a quotation letter
- Replying to a formal request for quotation (RFQ) from a company or government office
- Quoting for supply of goods where the buyer will compare several suppliers
- Quoting services such as maintenance, installation, cleaning or consulting
- Any situation where the buyer expects letterhead and a signature
If the customer just wants prices quickly, a standard quotation format with a table and totals may be enough. The letter format adds context and formality.
Quotation letter format: structure
- Letterhead: business name, logo, address, phone, email, tax number. Our letterhead template guide covers what to include.
- Reference number and date: a unique quotation number, such as Q-2026-084. A consistent system is explained in our guide to the quotation number format.
- Recipient: name, title, company, address.
- Subject line: what is being quoted and the buyer's reference.
- Opening paragraph: thank them and state the purpose.
- Pricing table: items, quantities, unit prices, totals, tax.
- Terms: delivery, payment, warranty, validity.
- Closing paragraph: how to accept, contact person.
- Signature block: name, title, signature, company stamp if customary.
- Attachments: specifications, brochures, full terms and conditions.
Sample wording for each section
Subject line
"Subject: Quotation for supply and installation of 12 CCTV cameras, your inquiry dated 3 November 2026"
Opening
"Dear Mr. Ahmed, Thank you for your inquiry. We are pleased to submit our quotation for the supply and installation of a CCTV system at your warehouse, as detailed below."
Alternatives:
- "With reference to your RFQ No. 112, please find our best prices below."
- "Further to our site visit on 5 November, we are pleased to quote as follows."
Terms paragraph
"Prices are in US dollars and exclude sales tax, which will be charged at the applicable rate. Delivery and installation will be completed within 10 working days of your purchase order. Payment terms: 50% advance with order, balance within 15 days of completion. This quotation is valid for 30 days from the date above."
For more wording options, see our guide to quotation terms and conditions, and for choosing a sensible validity, our article on the quotation validity period.
Closing
"To accept this quotation, please sign and return a copy or send your purchase order quoting reference Q-2026-084. If you have any questions, please contact me directly on 555-0190. We look forward to working with you."
Complete sample quotation letter
SecureView Systems, 14 Harbor Road, Springfield. Tel 555-0190. Tax ID 00-0000000.
Ref: Q-2026-084 Date: 12 November 2026
Mr. Imran Ahmed, Operations Manager, Northside Logistics, 77 Depot Lane, Springfield
Subject: Quotation for supply and installation of CCTV system, your inquiry dated 3 November 2026
Dear Mr. Ahmed,
Thank you for inviting us to quote. Following our site visit on 5 November, we are pleased to offer the following:
| No. | Description | Qty | Unit price | Amount |
|---|---|---|---|---|
| 1 | 4 MP outdoor IP bullet camera with night vision | 8 | $145.00 | $1,160.00 |
| 2 | 4 MP indoor IP dome camera | 4 | $110.00 | $440.00 |
| 3 | 16-channel network video recorder with 4 TB drive | 1 | $520.00 | $520.00 |
| 4 | Cabling, connectors and mounting materials | 1 lot | $380.00 | $380.00 |
| 5 | Installation, configuration and staff training | 1 | $900.00 | $900.00 |
| Subtotal | $3,400.00 | |||
| Sales tax 6% on equipment and materials ($2,500.00) | $150.00 | |||
| Total | $3,550.00 |
The math: equipment and materials are $1,160 + $440 + $520 + $380 = $2,500, and 6% tax on that is $150. Installation of $900 is shown untaxed in this example; whether labour is taxable depends on your state or country.
Terms:
- Completion within 10 working days of purchase order.
- Payment: 50% ($1,775.00) with order, balance within 15 days of completion.
- Warranty: 2 years on cameras and recorder, 12 months on installation workmanship.
- Validity: 30 days from the date of this letter.
- Excludes civil works and electrical supply to the recorder location.
To accept, please sign below or issue a purchase order quoting Q-2026-084. We look forward to your reply.
Yours sincerely,
Sara Collins, Sales Manager, SecureView Systems
Accepted by (customer): Name ______ Signature ______ Date ______
Email version of a quotation letter
For most small jobs, an email does the same job. Keep the body short and attach the PDF quotation:
"Subject: Quotation Q-2026-084: CCTV system for Northside Logistics. Dear Mr. Ahmed, thank you for your inquiry. Please find attached our quotation for supply and installation of 12 cameras and a 16-channel recorder. The total is $3,550.00 including tax, with completion within 10 working days of your order. The quote is valid until 12 December 2026. I am happy to walk you through it on a call. Kind regards, Sara."
Our guide on how to send a quotation by email has more subject lines and templates, and if you hear nothing back, use a quote follow-up email after a few days.
Quotation letter for services
When you quote for a service instead of goods, the pricing table describes deliverables, visits or hours, and the terms focus on scope. Sample wording for a monthly office cleaning contract:
"Further to our visit on 4 November, we are pleased to quote for cleaning your office at 12 Queen Street (approximately 3,000 sq ft) five evenings per week. The service covers desks, floors, kitchen and two washrooms as listed in the attached schedule. The monthly fee is $1,350.00 plus applicable tax, invoiced monthly in advance, payable within 14 days. Consumables such as hand towels and soap can be supplied at cost plus 10% or provided by you. Either party may end the agreement with 30 days' written notice. This quotation is valid until 12 December 2026."
Spelling out the frequency, the areas covered and what is excluded does more to prevent later disputes than any amount of legal wording.
Revised quotation letter
When the customer changes the requirement or negotiates the price, send a revised quotation instead of editing the original. Give it a revision number (Q-2026-084-R1) and open with a sentence that explains what changed:
"Further to our discussion on 18 November, please find our revised quotation. Item 2 has been reduced from 4 to 2 indoor cameras and the installation charge adjusted accordingly. This revision replaces our quotation Q-2026-084 dated 12 November 2026. All other terms remain unchanged."
The line "this revision replaces" avoids a customer accepting the old price by mistake, and the revision number keeps your records clear when you later invoice.
Quotation letter for a formal tender or RFQ
Government offices and large companies often require a specific format. Follow it exactly, even if it differs from your usual layout. Typical extra requirements include quoting the tender or RFQ number in the subject line, signing every page, stating prices in figures and words, confirming acceptance of the buyer's terms, and listing enclosed documents such as registration certificates and tax compliance proof. A quote that is perfect on price can still be rejected for a missing signature or document.
Tips for a quotation letter that wins
- Mirror the buyer's request. Use their item names and order so they can compare quotes easily.
- Show tax separately and say clearly whether prices include it.
- State exclusions. What is not included prevents scope disputes later.
- Be specific on delivery time. "10 working days from purchase order" beats "ASAP".
- Make acceptance easy: a signature line or a clear instruction to send a PO.
- Decide quote or estimate. If prices are fixed, call it a quotation; if they may change, read our comparison of quote vs estimate first.
Common mistakes
- No validity date, so a customer accepts months later at old prices.
- Math errors in the pricing table, which damage trust immediately.
- Missing the buyer's reference number, so the quote gets lost in their system.
- Long paragraphs of sales copy before the prices.
- Sending an editable Word file instead of a PDF.
Once the customer accepts, you can turn the same line items into an invoice in our free invoice generator. Copy the items, add your terms, and download a PDF in a few minutes, with no sign-up required.
Frequently asked questions
What is a quotation letter?
A quotation letter is a formal letter from a supplier to a potential customer offering goods or services at stated prices and terms. It usually answers a request for quotation and includes a reference to that request, a pricing table, taxes, delivery or completion time, payment terms, validity and a signature. Unlike a bare price list, it reads as a business letter and is often printed on letterhead.
How do I start a quotation letter?
Start with your letterhead, the date, a reference number and the recipient's name and address, followed by a clear subject line such as "Quotation for supply of 50 office chairs, your RFQ 112". Then open with a short sentence thanking them for the inquiry and stating that you are pleased to submit your quotation. Get to the prices quickly; buyers want the numbers, not a long introduction.
Is a quotation letter legally binding?
A quotation can become binding once the customer accepts it, depending on the wording and local contract law. If you state fixed prices, a validity period and terms, and the customer accepts within that period, you may be expected to honour it. Use words like "subject to" for conditions, include a validity date, and get legal advice on high-value contracts. This is general information, not legal advice.
What is the difference between a quotation letter and a quotation format?
A quotation format usually refers to a structured document like an invoice, with a header, item table and totals. A quotation letter wraps the same pricing in letter form, with an introduction, terms written as paragraphs or numbered points, and a closing. Many businesses send both: a covering letter and a quotation table. For simple jobs, an email in letter style is enough.
How long should a quotation letter be?
Usually one page, two at most. Include only what the buyer needs to decide: what you are offering, the price, tax, delivery, payment terms, validity and how to accept. Put detailed specifications, drawings or long terms and conditions in an attachment and refer to it in the letter, so the main letter stays easy to read.
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