Final answer:
Quoting policy is a way to explain to customers why their requests cannot be fulfilled, ensuring transparency and managing expectations. It also establishes fairness in pricing by clarifying the factors that contribute to the final price.
Step-by-step explanation:
Quoting policy is one way to ensure that customers understand why you can't give them what they want. By providing a clear and concise explanation of the limitations and constraints of your product or service through a quoting policy, customers can have a better understanding of the reasons behind your inability to fulfill their requests. For example, if a customer wants a customized product that requires additional resources or exceeds the capabilities of your production process, the quoting policy can specify the limitations and associated costs. This helps manage customer expectations and prevents misunderstandings. Furthermore, quoting policy also helps establish transparency and fairness in pricing. By stating the reasons and factors that contribute to the final price, customers can comprehend the value they are receiving and why certain requests or modifications may incur additional charges.