Guidelines for obtaining quotes

February 22, 7:56 AMBillings Small Business ExaminerBridgit Hanson

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Small businesses routinely face purchasing decisions for all types of products and services. Some commodity type products and services frequently involved in obtaining quotes include printing, office supplies and cleaning services. So how many quotes should a small business owner obtain before selecting a particular vendor? What should small business owners be cognizant of regarding quotes? The following simple guidelines will make obtaining quotes a smoother process.  

• Be clear with your request and make sure you communicate the same information to each vendor you solicit a quote from.
• Obtain a minimum of two quotes, preferably three quotes, before selecting a vendor. This will provide you with an average of the price you can expect to pay.
• Ask for options such as discounts for increased quantities or a long-term agreement. You can also ask for incremental pricing. For example, if a printer provides a quote for postcards to market your business you may find the price is better than you expected and being able to review pricing for various quantities will allow you to make a more informed decision for your business. 
• Review the quotes to ensure they are a fair comparison. For example, if you are obtaining quotes for office supplies be sure to verify whether the quotes are based on the same quantities, brands and level of service such as delivery service. Added values, such as delivery, needs to be considered when making comparisons.
• If the quotes are drastically different, contact the individual vendors to clarify what was quoted. It may be that the vendor misunderstood what you were asking for. If not, be cautious of extremely low bids. Avoid vendors that provide a quote and then suddenly have to change or update the quote, dramatically changing the price. This type of switch is a red flag. 
• Be sure to consider the level of service provided in addition to the quoted product or service. For example, if you are obtaining quotes for print services you may notice that one printer stands out as providing helpful advice for your projects and checks your projects before printing in order to alert you to any potential issues. This can make a big difference in your costs long-term.
• Be sure to obtain quotes in writing.
• In selecting vendors for quotes, ask other small business owners for feedback regarding particular products and services.
• Be ethical in your pursuit of a fair price. Do not share quotes of competitors with those bidding for your business. 
• Consider the payment terms being offered.
• Once you have an established long-term relationship with a vendor be sure to visit with them if problems arise before seeking a new vendor. They are often willing to work with you to return to the level of service you desire. Relationships are important to success.