Price lists, estimates, quotations and tenders

Most businesses will need to draw up a price list at some stage. If you sell a fixed range of products, this may be the only form of pricing you need. This type of standard price list can also be used as the basis for pricing your non-standard orders.

Special pricing rules apply to certain businesses, including retailers, restaurants, pubs and garages.

The price you give is only an offer - you can't be forced to sell at that price. However, your customers will expect you to honour the prices on your price list.

It's a good idea to date your price lists - particularly if your customer is likely to keep it for a long time. You should make it clear when any special offers expire. It can also be useful to include a clause at the end of the price list stating that prices are subject to change.

If your business sells to consumers, you should list all prices inclusive of VAT. It is common practice to give prices excluding VAT if you sell to other businesses. However, you should clearly state that this is what you have done.

You should make clear whether any delivery, packing or postage costs are included in your prices. Additionally, although you don't have to indicate discounts for bulk purchases on your price list, it might attract more business.

Clarity is important - the clearer your price list is, the less scope there is for misinterpretation, misunderstanding or confusion.

You may be able to use software packages to help you draw up complex price lists.