Quoted Price

What is the Quoted Price?

The price at which a financial item, such as a stock, bond, or commodity, has traded most recently is the Quoted Price. Every trading day, as investors' perceptions of the value of the investments fluctuate, so does the volume of buy and sell orders they place, which affects the quoted prices for all investments.

A publicly traded company's current quoted price can be the most recent offer or bid price. The offer price is the current lowest price at which a stockholder is willing to sell their shares, whereas the bid price is the highest price that someone is currently willing to pay for the stock.

Investors must comprehend how a traded financial asset is priced in order for the reported price to have any meaning for it. Quotes for stock prices are simple and usually given in dollars and cents.

Quotes are classified as

• Securities Quotes
• Bid Quotes, and
• Product Quotes

A securities quote is the highest bid or lowest offer price for the security a trader offers in the securities market at a given time. A bid offer is a price a merchant is willing to pay when bidding on an item.

A product offer is a viable price publicly quoted by a seller considering his product’s cost, profit, and market competitiveness.

quoted price: Quotation Tips

How can we quote effectively?

• Quoting too high will scare away customers.
• If the price is too low, the customer will know that you are not a connoisseur and will not dare to risk doing business with you.

It is not easy to offer to old customers.

Because the company will be proud of its strength, the price will be firm. When a company receives an inquiry from a customer, it doesn't know how to quote.

If the offer is too low, there is no money to be made. However, if it is too high, it is afraid that the customer will give the order to someone else.

An experienced exporter will first make adequate preparations before quoting. Then, in the offer, they choose the appropriate price terms and use the payment method, delivery date, shipment terms, insurance terms, and other elements in the contract to bargain with the buyer.

They can also take the initiative in the offer with their comprehensive advantages.

Prepare Ahead

First, carefully analyze the customer's willingness to buy, understand their real needs, and draw up a reasonable quotation with a target. Some customers consider low prices as the essential factor.

At the outset, give them close to your bottom line price, and then the possibility of winning the order is greater.

Second, do good market tracking research and be clear about the latest market developments.

Due to the high transparency of market information, the market price changes more rapidly. Therefore, the exporter must be based on the latest market price quotes to buy and sell the possibility of a deal.

Some formal, more assertive foreign investors are familiar with and understand the internal and external market conditions and market environment. This requires export companies themselves to be well informed.

Therefore, the sales staff should often go to the factory to collect sources of goods and be very clear about the selling price of some local manufacturers.

At the same time, as a professional company that has been operating professional varieties for a long time. It has been expanding its business in the industry for a long time, and the company has more advantages in the market.

Not only do they understand the development of this industry and the history of price changes, but they also can make reasonable analyses and predictions of the trend.

Select Price Term

In a quotation, price terms are one of the core parts because the price term used determines the division of responsibilities and profits between buyers and sellers.

Therefore, before preparing a quotation, the exporter should try to meet the customer's requirements, fully understand the real meaning of various price terms, and choose them carefully.

Some large multinational companies, on their own, can get preferential terms in transport and insurance. They may also require exporters to Free on Board (FOB) price deals to ensure their control.

Then again, most of the goods exported to Japan are FOB prices. Therefore, even if the exporter offers favorable terms, it is difficult to change the price terms over.

In the end, catering to the buyers’ needs or adhering to their principles, exporters offering more discretion is necessary.

In the case of exports, profits are generally not very high. Therefore, it is more important than ever to make careful calculations for each step in the whole trade process. On the other hand, some domestic exporters are making good profits from their foreign sales.

These enterprises start by quoting FOB prices when quoting externally. This will allow customers to compare the price of goods from this enterprise before asking for the CIF price. They also insist on arranging transportation and insurance in the domestic market.

They think this will give buyers more choices, and, sometimes, the transportation and insurance costs can earn a little difference.

Use Of Contractual Elements

Other elements of the contract mainly include payment method, delivery date, shipping terms, insurance terms, etc. Among the factors affecting the transaction, price is only one of them.

If you combine the other elements and negotiate with the customer, the price flexibility should be more significant.

For example, sometimes you give customers 30 days or 60 days forward payment terms of the letter of credit may be attractive to them in countries like India and Pakistan.

At the same time, you can also adjust the offer according to the geographical characteristics of the export, the buyer's strength and character characteristics, and the goods' characteristics.

Some customers are particularly concerned about price. They place their orders with the seller who offers the lowest price and then quotes them directly the lowest price they can offer. Some customers are used to bargaining.

If you don't haggle about the price quoted by the customer, the company will have concerns as the customer can keep the profit they want to cut at the first quote.

If a product is in a period of a market downturn, the customer might as well just quote the lowest price to grab an order.

Promising customers fast and on-time delivery is essential to attract more potential buyers, especially for clothing and other seasonal goods.

According to the sales off-season, peak season, or the size of the order can also be adjusted to the quotation strategy. Some companies export a variety of products with many specifications.

Some regional markets have more uniform prices to more conveniently deal with foreign inquiries.

They also make some adjustments according to different seasons. In the face of more fragmented orders, their quotations are often based on ensuring the company's profitability and flexibility.

Comprehensive Strength To Win

Confidence in their comprehensive strength, there is no need to be bent on low prices to please customers. So, before quoting, on the one hand, consider the customer's reputation. But, on the other hand, you should have confidence in your products and quality.

When dealing with new customers, it is essential to let them understand the situation. For example, invite them to see the factory. This will allow customers to learn about operating procedures, making their minds much easier when placing an order.

At the same time, from your quotation, foreign business people who are familiar with the industry will be able to perceive whether you are also an old hand in the industry and judge your credibility.

Finally, before quoting a new customer, let them understand your company's strengths and business operation model as much as possible. Your customer will make more likely to consider your trading conditions if you and your company demonstrate confidence.

Many inexperienced exporters often overlook these points. In the market, a good company image is a golden sign to attract customers.

Quoted Price And Foreign Exchange Quote

A foreign exchange quote is an exchange rate between two currencies, or it may be a rate. For example, let's say that the exchange rate of the US dollar to the Japanese yen is 120.78.

Where 120.78 is the exchange rate of taking the US dollar to the Japanese yen or the exchange rate of taking the Japanese yen to the US dollar.

Since the bank's quotation is made based on the international financial market's instant exchange rate plus a certain margin of bid-ask spread reported, the exchange rate changes with the changes in the international market.

Due to the special status of the US dollar, the foreign exchange market will generally treat the US dollar as a foreign currency.

So if one of the currencies in the exchange rate is the US dollar, then the currency is fixed to the US dollar. This is the US Dollar Quotation or Dollar Terms method.

The US Dollar Quotation method expresses the exchange rate in terms of how much of another currency should be exchanged for a certain unit of US Dollars. The US Dollar Quotation method is commonly used in the interbank market in various countries.

Generally speaking, the institution that provides the transaction price (exchange rate) is called the quote, and usually, the foreign exchange bank acts in this role.

The price offered by the bank to the offeror and provided by the offeror and the price at which the offeror conducts the transaction is called an offer. Such institutions are also mainly other foreign exchange banks, dealers, individuals, central banks, etc.

Quotation classification

The above section has briefly introduced the object of Forex trading and quotation methods. Now we turn our attention to the main body of Forex trading.

Stock Quote

A quote is the highest bid or lowest offer that a trader in the securities market will make for a security at a given time. The offer represents the highest price that both buyers and sellers are willing to pay.

The bid is the price at which a buyer is willing to buy a security, and the offer is the price at which a seller is willing to sell. Usually, the order of quotations is the incoming price comes first, and the outgoing price comes second.

In the stock exchange, there are four types of quotes: the first is shouted, the second is a gesture, the third is filled in the declaration record form, and the fourth is entered into the electronic computer display.  

By the bidding unit according to the tender documents and relevant provisions. The purchaser can be based on the natural, social and economic conditions and construction organization plan of the area where the delicate project is located.

And to calculate the cost of economic documents required to complete the tender project, taking into account the conditions of the bidding unit.

Tender offer

The bid price is the key to directly affecting the success or failure of the bidding unit and the project’s profit.

There are advantages and disadvantages of too high and too low quotations. How do you win and have a certain profit margin? Here for the construction budget and unit price analysis or total cost to explain.

First of all, there should be an accurate construction budget. The budget amount should be deducted in addition to the construction unit (owner) may appear as management fees.

You can consider this budget as the construction unit (owner) of the bid, and the amount of the construction budget is generally higher than the amount of the projected project cost, which we will quote in this area.

With the interests of the unit and long-term goals in mind, they should also correctly estimate the situation of competitors and target and make reasonable decisions on their offer.

Product Offer

In international or domestic trade, the buyer asks the seller for the commodity’s price, and the seller quotes a feasible price by considering the cost of his product, profit, market competitiveness, and other factors.

The general business process of the seller's quotation is costing - making a printed quotation - submitting it for signature - and faxing it to the customer.

Researched and authored by Zezhao Fang | LinkedIn