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bill of materials & pricing & quotation help. not it related actually.

Posted on 2013-05-25
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Last Modified: 2013-12-24
Hi there;

This question is not IT related question but business related question. I want to learn about bill of materials, pricing and quotation in business area.

I need easy to understand explanation and links that a 6 year old can grab the concept.

Regards.

P.S. couldn't find a business related link
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Question by:jazzIIIlove
7 Comments
 
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by:aburr
aburr earned 1332 total points
ID: 39197015
Bill of materials - just a list of what you need to buy or build the project
priceing - just the price of each of the items in the bill of materials.
Quotation - the sum of all the prices. In many cases a discount is put in here.
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The discount is just a special price given to encourage the person paying to do it now from this particular source
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Expert Comment

by:Dave Baldwin
ID: 39197017
I frankly doubt that a 6 year old can understand all of what you are asking for.  Most adults don't seem to understand it.  And there are many aspects to the rather broad subjects you're asking about.

Do you have a specific need or example?  In other words, what are you trying to do?
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Expert Comment

by:aburr
ID: 39197021
There are a large number of relevant links which you can find by asking google "Bill of materials"
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Author Comment

by:jazzIIIlove
ID: 39197072
Just a simple example case would be enough.

Regards.
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by:
aburr earned 1332 total points
ID: 39197099
new front entrance to house
bill of materials        door                                                  567
                                   molding  20 feet at $1.00/foot        20
                                   lock set                                               26
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materials                                                                              613
installation                                                                           300
 
Total cost                                                                               913

20% contractor discount                                                     182.60
Total cost   (due in 20 days)                                            $  730.40
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LVL 12

Author Comment

by:jazzIIIlove
ID: 39197548
Hi;

Thanks! That's what I wanted. If you want, you or someone can enhance further your example.

Regards.
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Assisted Solution

by:TommySzalapski
TommySzalapski earned 668 total points
ID: 39199096
aburr's example could be a bill or an estimate/quote. Generally when company A has a project, it sends an "invitation to bid" to several contractors. These contractors will write up estimates for how much it would cost them to do the projects. They then use these estimates to come up with a "quote." The quote is just the price they say they can do the project for. They will usually include the estimate as part of the quote. If not for the "due in 20 days," then aburr's example would look just like some quotes I've seen.
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