The quote is valid for 90 days. The customer signs on day 88.

Every quote with a validity period is an option written for free, and the ones exercised last are rarely the ones you would have chosen.

By Steve 5 min read
Abstract bridge artwork for The quote is valid for 90 days. The customer signs on day 88.

A quote that says “valid for 90 days” is not a price. It is a price plus an option. For three months the customer holds the right, but not the obligation, to buy at a number you fixed before you had bought a single input. If costs fall, they can go back to the market. If costs rise, your number starts to look attractive and the order arrives. The option has real economic value, it sits entirely on one side of the table, and almost nobody charges for it. This…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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