Listen to a Business English Dialogue About Subject quote
Steven: Hi Penelope, have you heard about subject quotes in business and finance?
Penelope: Yes, I think they’re preliminary price quotes provided by sellers, subject to confirmation or negotiation before finalizing the transaction.
Steven: That’s correct. Subject quotes are often used in industries where prices can fluctuate or are subject to change based on market conditions or other factors.
Penelope: Can you explain how subject quotes differ from firm quotes?
Steven: Subject quotes are not binding and may change based on further negotiation or confirmation, while firm quotes are legally binding offers that sellers are obligated to honor.
Penelope: Are subject quotes commonly used in certain industries?
Steven: Yes, subject quotes are common in industries such as commodities trading, construction, manufacturing, and wholesale distribution, where prices can vary due to factors like supply and demand, raw material costs, or market fluctuations.
Penelope: How do buyers and sellers handle subject quotes?
Steven: Buyers and sellers typically use subject quotes as a basis for negotiation, discussing terms such as quantity, delivery schedule, payment terms, and any other relevant factors before finalizing the transaction.
Penelope: Can subject quotes be revoked by sellers?
Steven: Yes, sellers may revoke subject quotes if market conditions change significantly, costs increase unexpectedly, or if there are errors or omissions in the initial quote that need to be corrected.
Penelope: Are there any risks associated with relying on subject quotes?
Steven: One risk is that subject quotes may change or become invalid if market conditions or other factors change before the transaction is finalized, leading to unexpected price adjustments or delays.
Penelope: How do buyers ensure they get the best deal when negotiating subject quotes?
Steven: Buyers can compare subject quotes from multiple sellers, negotiate favorable terms, clarify any uncertainties or contingencies, and conduct due diligence to ensure they’re getting the best value for their needs.
Penelope: Thanks for explaining, Steven. Subject quotes seem like an important aspect of negotiating business transactions.
Steven: Absolutely, Penelope. Subject quotes provide flexibility and transparency for both buyers and sellers, allowing them to navigate pricing uncertainties and negotiate mutually beneficial agreements.