Whatever your business does, you probably need to provide quotes to your clients. Getting your business quotes right can make your business look more professional and increase trust in your brand, leading directly to an improved reputation and increased sales. But what is a quote? Why are quotes so important? And do you need a business quote creator app to get your quotes right?
Here we share everything we know about quotes, including the ways our Billdu quote maker can help make the entire process quicker and easier for you.
What is a quote?
A quote is a document which tells the customer what you will charge them for doing a particular job. Not all businesses need to use quotes – if you sell goods, for example, you will normally have standardized prices listed so the customer can see straight away what price they will pay for the items they want. However, if your business provides services, it is likely that every job will be different, so if a potential client is interested in hiring you to do the work, they will probably ask you to provide a quote. This is why quotes are so important; a good quote can make the difference when it comes to getting chosen over your competitors.
If someone asks you for a quote, this means they are seriously interested in hiring you. The quote is normally provided at the stage when you have had a detailed consultation with the client. You’ll know the nature and scope of the job, how long it will take, how many team members will be needed and what materials you will need, as well as timescales and budgets. Once you have all this information, you can work out how much to charge for the job by pricing all the elements and adding them together.
Why are quotes so important for businesses?
Quotes are extremely important because they increase the levels of trust and transparency between you and your clients. They demonstrate that your business is a professionally-run outfit that has a clear and consistent pricing structure and can break down each element of a job into separate charges. This shows the customer that you have a clear idea of the amount of work involved in the job and that you are open about your pricing so they won’t face any hidden costs further down the line.
A quote also sets out clearly in writing the terms and conditions of business between you and the client. That way everyone knows what is expected of them and the client has the peace of mind that they are protected should these terms and conditions be broken. If a business is not prepared to give a written budgeting quote for a job, this gives out a warning sign to the customer. Then they are likely to award the contract elsewhere. By providing them with a quote, you are demonstrating the trustworthy nature of your business and letting the client know you want to be considered as a serious contender for the work.
In addition, when you are starting out in business, learning how to create a quote can focus your mind, too. It requires you to analyze what you believe your services are worth and how much to charge for your time, as well as helping you to understand the scope and gain a clearer idea of the amount of work involved in different jobs.
Understanding quotes compared to estimates, bids and proposals
Quotes, estimates, proposals and bids are all documents that are regularly used in business, but many people don’t know the difference between them. It is essential to know what each one is so you can conduct your business properly.
A quote is a legally binding document. This means that the price you charge for the job can’t be changed once the quote has been accepted by the client. Even if the job ends up involving a lot more work than you anticipated, you can’t charge any extra for the additional workload.
An estimate is a lot more flexible than a quote. It is not a binding document so it is basically your best guess at what the job will cost, subject to change. If you want to give your customers confidence without the legal formality of a quote, you can give them a number of different estimates based on best-case, worst-case and average scenarios to prevent them from being too surprised by the costs if the job does not run smoothly.
However, if you end up charging significantly more than you estimated, this will have a negative effect on the reputation of your business. Providing a quote will always inspire more trust and confidence than an estimate as it shows the client you are prepared to keep to your word.
Billdu includes an estimate creator in its app. We encourage you to try our free estimate generator to see how easy it is to create business estimates. By signing up for a free Billdu trial, you can make advantage of all the powerful but extremely easy to use tools in the Billdu app including invoicing, expense tracking, delivery notes, credit notes, communication and much more.