A quote is an offer that you send to prospective clients and which includes the price and details of the job, product, or project.
The quote includes all the details of the sale. If the client accepts the quote, you can convert it to an invoice once the product or service has been delivered.
Which businesses use quotes?
Many businesses across different industries rely on quotes, particularly businesses that offer customizable services or products with variable costs.
Examples include:
- The construction industry: Construction companies send quotes to provide clients with detailed cost breakdowns for projects, outlining the cost of materials, labour, and other expenses so that clients can make informed decisions.
- Freelancers and contractors: Freelancers and contractors can use quotes to specify the scope of their work or projects, including all the costs associated with it. This ensures clear communication and agreement between the parties before the work starts
- Consultants: Consultants can use quotes to define the scope of their services, estimating project timelines and the associated costs before starting work.
How to make a quote
To make your quotes you can use quoting software, or you can download a free quotation template. The quote can include many of the same details as an invoice, minus due date. This will make it easier to convert it to an invoice if the client accepts the offer.
Here’s what you should include:
- The header should be ‘quote’ or ‘quotation’, instead of ‘invoice’
- You should include the date the quote was created, and how long the quote is valid
- Include your contact details and the client’s contact details
- Describe the products, services or projects you’re gonna be undertaking, along with prices
- Add tax and discounts, if applicable
- Delivery or shipping costs, if applicable
- Payment terms
- Other relevant information, such as a timeframe on a project, and information about warranties or returns.
You might have to amend the quote before the client accepts it.
Whichever solution you choose to create your quotes, it’s important that you can create consistent quotes quickly.
It’s a good idea to send quotes as quickly as possible once you get a request from a client. It’ll show that you run an efficient and professional business, and it’ll let you compete with other suppliers the clients might be getting quotes from.