What it means
Quotes commonly carry a validity date because cost and availability change, so a customer may return an old proposal after materials have risen in price or a production slot has been filled. Accepting it without review can erode margin or create a promise the business cannot meet, and a review gives the seller facts for a fair choice.
Start with the exact version the customer received, checking issue date, stated expiry, scope, quantity, currency, taxes, delivery conditions and any assumptions. A later email may have extended the offer or changed one line, so confirm what the customer intended to accept and whether a contract was already formed under the governing terms.
Refresh costs and availability by asking suppliers whether their quotes remain open, checking usable inventory and current freight or subcontractor rates, and verifying the delivery schedule. Review margin using the complete cost, not only purchase price, and if a discount depended on a minimum quantity or date, check that condition.
A customer may be willing to accept a later delivery at the original price, but that is a new choice to document. Decide the commercial response within authority, since the business might honour the original quote, offer a revised price, adjust scope or propose an alternative.
Approval limits for discounts and low-margin work still apply, so communicate the change plainly and give the customer a new validity period. Do not claim a price rise is legally required when it is a commercial choice.
Check downstream records: if the customer sent a purchase order referencing an expired quote, compare its terms with the approved revised offer before acknowledging. Update the sales order, production schedule and deposit request to the accepted version, and record why an old price was honoured or revised so the next reviewer understands the decision.
Review how often quotes expire without action, since a high rate may mean the sales cycle is long, follow-up is weak or the validity period is unrealistically short. If suppliers change prices frequently, state a sensible validity and update templates rather than using artificial deadlines that the business ignores.
For owners, quote expiry review protects margin and credibility, letting a business stay flexible with customers while knowing what it is committing to deliver and at what cost.
In practice
Real-world examples.
Example
A customer accepts a three-month-old equipment quote. The buyer checks the supplier's new price and delivery slot before confirming.
Example
A service company honours an expired fee after confirming labour capacity and obtaining a documented margin exception.
Example
A printer revises delivery rather than price because a paper stock is temporarily unavailable, and the customer accepts the new version.
Formula
Calculation
Updated quote margin = (Proposed selling price - Current estimated direct cost) / Proposed selling price x 100
Worked example. An invented seller quoted $50,000 with direct cost of $35,000, a 30% margin. At acceptance, current cost is $40,000.
- If the price stays $50,000, updated margin = (50,000 - 40,000) / 50,000 x 100 = 20%.
- The seller compares the new margin with its approval rule before confirming or proposing a revised offer.
Include delivery and other direct costs, and check whether the quoted scope is unchanged.Case study
Seen in the real world.
This illustrative and entirely fictional example follows Meadow Fixtures, an invented supplier of restaurant furniture. A customer accepted a quote two months after its stated expiry. Sales sent an order confirmation immediately, but the supplier had discontinued one chair finish and raised freight rates. Meadow could not fulfil the exact order at the promised date. The sales manager paused the confirmation and reviewed the original quote, supplier availability and customer need.
The customer preferred the same finish and accepted a later delivery with an updated freight charge. Both sides confirmed the revised version. Meadow then changed its workflow so an expired quote could not become a live order without a capacity and cost check. The review did not save every sale. It prevented a false promise and gave customers an honest choice before they planned around a date that was no longer realistic.
Watch out
Common mistakes.
- Accepting an old quote without checking cost, stock and capacity.
- Quietly changing terms after acceptance instead of obtaining agreement to a revised version.
- Treating expiry as an automatic right to ignore a contract that may already have been formed.
Questions
People also ask.
Must an expired quote be rejected?
No. Review the terms and current feasibility, then make an authorised commercial offer or decision.
What if the customer sends a purchase order?
Compare it with the valid approved quote and resolve any price, scope or timing difference before acknowledging.
Should the original quote be deleted?
No. Keep it and the new version with dates and approvals so both sides can trace the change.
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