DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A. K. Swamy
Designation : Lecturer
Branch : DCCP
Institute : Govt. Polytechnic for
Women, Nandigama.
Year/ Semester : IV Semester.
Subject : Business Correspondence
Subject Code : CCP404
Topic : Letters of Enquiries, Offer,
Quotation, Acceptance and Order
Sub-Topic : Differences between Offer and
Quotations
Duration : 50 Minutes
Teaching Aids : PPT, Animations
CCP404.7 1
Objectives:

On completion of this period, you would

be able to

 Meaning and differences between OFFER

and QUOTATION

CCP404.7 2
Recap

In the previous period, you have learnt

 Meaning of Enquiry
 Contents of Enquiry letter

 Drafting of letter of Enquiry

CCP404.7 3
Known to Unknown

 What is an enquiry?
 Why a trader writes enquiry letter?
 Does it get any response?
 Do you know the name of that response of that
response letter?
 If yes, what is it?

CCP404.7 4
Meaning of ‘Quotation’
 This is also called reply to enquiry.
 This is written by a supplier in response to the
enquiry letter.
 It furnishes the information about prices of goods,
availability of goods,
 Terms and conditions of business, mode of
transport etc.,

CCP404.7 5
Meaning of ‘Quotation’

 The subject matter in the quotation letter may be

changed according to the enquiry letter
 On receipt of an enquiry letter, the seller should be
prompt in sending a quotation letter
 Otherwise, the buyer may place the order
somewhere else

CCP404.7 6
Meaning Of ‘Offer’:
 It is also called Sales letter or Sales promotion letter

 An offer is sent by the seller to his customer

 It is sent by the seller on voluntary basis

CCP404.7 7
 Meaning Of Offer contd

 An offer can be made to the large number of

customers
 Sent as a printed circular letter
 Sent to the customers without receiving any
enquiry letter from them

CCP404.7 8
 Meaning Of Offer contd

 These are made by manufacturers or wholesalers

 Offers boost sales or strengthen existing business
 Offers may be
1. General offer
2. Specific offer
3. Offer to a particular firm or company

CCP404.7 9
Advantages of Offer:

 Create new customer base

 Increased product sales
 Clears old stock (special discount)

CCP404.7 10
Differences between Quotation and
Offer
1. Quotation is sent in reply to an enquiry
whereas
Offer is sent on the own initiative of a seller
2. Quotation is addressed to a particular firm or
individual when asked.
whereas
Offer is addressed to a large number of customers
even when not asked for.

CCP404.7 11
Differences contd
3. A quotation may not improve the sales.
whereas
An offer may improve the sales.

4. A quotation is made to a limited number of

customers.
whereas
Offer is made to large number of customers

CCP404.7 12
 Differences contd

5. Quotation may be in the form of a letter or tabulated

form.
whereas
Offer may be in printed form or through
advertisement in the news paper.
6. In quotation a trader may quote the lowest rates
whereas
In offer, a trader need not quote the lowest rate.

CCP404.7 13
 Differences contd

7. Quotation can not help the trader to expand his

existing dull business
whereas
Offer help in expanding the existing week
business and strength it

CCP404.7 14
 Differences contd

8. In case of quotation, it is the responsibility of the

supplier to send it
Whereas
In case of offer, it is the choice of the supplier to
send the offer

CCP404.7 15
Summary

 Quotation is sent in reply to an enquiry

 It is sent by the supplier to the customer
 Offer is sent by the seller to his customers on
voluntary basis
 There are so many differences between quotation
and offer

CCP404.7 16
Quiz
1. Quotation is sent by the
A. Customer
B. Supplier
C. Both
D. None
2. Quotation is sent in response to the
A. Order letter
B. Enquiry letter
C. Letter of cancellation
D. All
CCP404.7 17
Quiz
3. The purpose of quotation letter is
 To enquire about the price
 To quote the price of goods
 To attract sellers
 All
4. The Offer is sent
a) In response to the enquiry letter
b) In response to the order letter
c) Sellers own initiation
d) None
CCP404.7 18
Frequently Asked Questions

1. What is Quotation letter?

2. What is Offer letter?
3. What are the differences between Quotation and
Offer.
4. What are the advantages of an offer?

CCP404.7 19