Proposal - what is this and how binding is this document?

offer what is it

The main document that initiates any transaction,is an offer. What is it and how to make it competently? Many of us know the term "commercial offer". We receive them, send them out, analyze them. Such an offer is an offer. What is this in terms of workflow? How binding is this proposal?

As a rule, such a document is drawn up in responseon a specific request. Consequently, the term of the offer is limited in time, as often it indicates the price or the goods whose quantity in the warehouse is limited. The cost of production depends on the specific configuration, and on the exchange rates that are relevant for this period. In addition, the terms of the offer also include delivery dates. They affect the final price of the product. In business use there is also the concept of "preliminary", or approximate offer. What is this and how to understand this term? Suppose an enterprise needs to translate documentation (instructions, annotations, guarantees, etc.) into a foreign language. Managers responsible for imports, turn to various translation agencies,
to estimate the cost of services. The document that appears in the result will be an offer. What is it in this particular case? In response to the request, the translation agency will send out a commercial proposal specifying the terms of implementation, terms of payment and full cost. If time is not very tight, managers have the opportunity to evaluate all the proposals received and choose the most profitable for the company.

offer conditions

However, an offer - or a commercial offer - is notis in the full sense of the word a document having legal force. It is best if the text itself contains a paragraph indicating the advertising nature and the validity period. Often - especially if it is a question of expensive projects and equipment - the client can think for months. During this time, the situation on the market may change. For example, as a result of adjusting the exchange rate or changing major suppliers. Therefore, the offer has a limited period of validity. Large contracts are prepared in weeks, or even months. In order to make the best decision for the business, it is necessary to gather information about suppliers, competitors, partners.

term of an offer

At the same time, every entrepreneur must befamiliar with the rules of drafting such a document as an offer. What is it and what are the main principles? First of all, the proposal can concern both a specific product and cooperation "in general". In the latter case, the final offers are placed on separate lots of goods or individual services. The offer includes: the price, delivery / execution time, possible discounts, terms of payment. As a rule, such a document is composed of a bit of "power". It indicates prices with the possibility of certain discounts, terms depending on the date of acceptance of the offer. The offer does not oblige to purchase goods from this supplier. Nevertheless, if we are interested in sales, we must create a document in this way in order to obtain competitive advantages. Therefore, the conditions for granting discounts, special shares and accelerated delivery must take into account the specific capabilities of our potential client.

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