The quotation template is a document that serves as an overview of what you’ll offer the client or an in-depth highlight of the price of services you provide your clients. Drafting the quotation template should be the first thing you do before doing a transaction with a client. And how well you prepare the quotation temperate determines whether the deal will be a success or not. Because of this, you need to be very cautious when making the quotation template and confirm that all the details, including the competitive prices, are well laid out.
If you still need further insights on preparing a quotation template, you’ve come to the right place. Here’s a guide on everything you need to know when preparing this document.
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What to Include In the Quotation
The purpose of the quotation template is to attract new clients, show your professionalism, and meet your consumer and trading needs. It also helps you safeguard your business from financial and legal risks. When drafting it, there are several important details you need to include, and these are;
- Business Details. Here, you should detail your contact and ABN details, which is a requirement by law.
- Total Cost. You should do an in-depth explanation of what the job entails and give an overview of the incurred costs. As you do this, you can make a note if necessary of what’s not covered. For instance, the cost might cover labor and parts but not the delivery.
- Cost Analysis. The quotation template should define the job proposal, and this entails detailing the materials and labor and explaining the included elements.
- Variations. This is a detailed analysis of how the cost is affected by different variations or scenarios. For instance, “Laws mowing cost is covered by the quote. However, carrying the clippings will cost you an extra 20%” Including variations is an excellent chance to upsell.
- Revisions. You need to allow yourself the chance to adjust the quotation after starting the work, and finding it entails a lot more than you had anticipated.
- Schedule for Work. When writing the quotation template, make sure to state when you intend to begin the project and the duration this will take. You should also state whether your schedule is affected by other variables, for example, pleasant weather. It’s essential to set a reasonable timeframe within which you’ll complete your job since you’ll be legally held accountable if you don’t do so.
- Terms and Conditions of Payment. You need to mention when the payments should be made. The various options include half upfront and half on completion, periodical payments, or a lump-sum payment.
- Quote Expiry Date. Ensure to indicate the duration within which the quote must be accepted. This is especially vital if you operate in a volatile industry where the prices change quickly.
- Customer Acceptance Signature. There also should be a “Sign Here” statement on the agreement. For example, “I (name) accept the above terms and conditions. Signed _ Date _
- Payment Methods. If you’re being paid a deposit fee, you should state your desired payment method.
Word & Excel Quote Templates
Differences Between an Invoice And Quote Template
It’s easy to confuse the quotation template and invoice, so here’s an overview of the distinguishing elements to know about these two documents;
- The invoice is non-negotiable, while the quote can be negotiated on the different scenarios.
- Whereas the invoice is a document showing the progress and completed payments, the Quote is an answer to the Request for Quotation (RFQ).
- The clients are given the quotation before purchasing an item, whereas the invoice is produced before the payment is made.
- The quotation acts as a format or suggested estimate of the amount or services to the product to be purchased while the invoice is given before the partial or total payment for the bought product has been made.
- Unlike the quotation, which may be given through verbal communication, the invoice must always be written.
Quote Formats
Tips for Making a Quotation
If you wish to perfect the skill of stating the right quote, you need to learn the quote’s preparation, how to present the quote, and give a response to your customer once the quote has been accepted. It’s very crucial to build these quoting skills to build your customer base and get more work. Here are some of the useful tips to observe when writing a quotation.
Always Give Your Quote in Writing
Although verbal quotations are accepted, it’s always advisable to have the quote in writing to prevent any confusion. This is crucial despite verbal quotes being equally binding to avoid misunderstandings and communication errors.
Ensure A Professional Look
When drafting the quotation, it’s essential to remain professional, and one way of achieving this is by;
- Having a clear and reasonable structure
- Make sure to use the company letterhead
- Carefully inspecting the punctuation and spelling
- Open the quotation with greetings and give thanks to your clients for this opportunity to give your quotation
Add Value
Your primary goal should be finding a way to distinguish yourself from your competitors. And because clients typically get a minimum of 3 quotes, designing a unique selling strategy allows you to show why you’re the right choice.
Meet The Needs of Your Customer
You should assure your customers or guarantee that you’ll deliver on your quote by;
- Confirming the quoted price is reasonable to get the job and still make a profit.
- Never giving a quote unless you’re confident if delivering quality as required by the customer.
- Don’t assume anything. Instead, you need to fully understand the client’s precise requirements and ensure the customer is clear and concise in explaining what they want.
Follow Up
Use the quotation’s expiry date as the guide whenever you’re following up on the quote. But as you do this, make sure not to be very pushy and instead notify your customer cordially prior to the expiration date.
Confirm Agreements
Make sure to get the client’s written confirmation once the quote has been accepted before you commence on the assigned tasks.
Revise
Should there be significant changes with the job, make sure to revise the quote. It’s advisable o request the customer’s approval before you even proceed with working.
Know Your Business Risks
You must assess your job managing ability. If you have any concerns on whether the job is viable, consider the possible worst-case scenario for better insights. After doing so, you should consider including a clause in the quote safeguarding both parties from unwanted results.
Understand Your Obligations
The quotation is a legally binding document to the agreed-upon terms and conditions of delivering the goods and services. Because of this, make sure to get useful insights from your industry association and details on how to prepare contracts and quotes given by the Office of Fair Trading.
How To Send A Price Quote
In many cases, the price-quote conversations happen through email, whereby the client gets the quote’s PDF version. However, you should never send your customers Sheets/ Excel files used when creating the quote. This is because the editable quotation template is only meant for your personal use and should only send the PDF output you’ve made.
Quotations Forms (Word, PDF)
The quotation template is a vital document for the smooth running of business operations between you and your clients. If you didn’t know where to start preparing one, this in-depth guide has detailed everything you need to know. With these insights, you’ll be able to prepare a comprehensive quote.
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