Part 01
Quoting and trade terms
A price on its own means nothing to a buyer abroad. It needs a trade term that says where your costs and your risk stop, and the few conditions that sit next to it. This part is about getting that right before the number goes out.
In what order to think about it
- Where does the goods' journey stop being your job? At your door, at a terminal near you, on board a ship, or at the buyer's warehouse. That choice is the trade term. Start with which Incoterms 2020 rule to quote.
- What does the price include? Packing, inland freight, export clearance, ocean freight, insurance. Each of these follows from the rule you picked, so pick the rule first.
- When and how do you get paid? A good price with a bad payment term is a bad deal. See payment terms compared and, for documentary credits, what to check in a letter of credit.
- How long is the price good for? A validity date, and what happens to the price if materials move. If you later need to change it, here is how to tell the buyer.
- Where does it all get written down? In the quote, then in the proforma invoice, with exactly the same wording.
The email that carries the price is covered on relaysolo.com: how to write a quotation email, including unit price, MOQ and validity.
Other parts of the handbook
- 02 · Getting paid: where the money risk sits.
- 03 · Samples, orders and documents: sample requests and the paperwork after a yes.
- 04 · Fraud and safety: bank detail change fraud and phishing aimed at exporters.
- 05 · Working across markets: working weeks and holidays, and plain English for non-native buyers.
How these guides are researched and checked: about this handbook.