Every job starts with a quote. You can think of quotes as your customer\u2019s first impression of your business and pricing model.<\/p>\n\n\n\n
With this in mind, having a strong quote-to-invoice process strengthens the success and efficiency of your business. But where do you start?<\/p>\n\n\n\n
Keep reading to learn how to create quotes that are sure to turn your leads into repeat customers. <\/p>\n\n\n\n
Before learning how to create a quote, it\u2019s important to fully understand what a quote actually is.<\/p>\n\n\n\n
A quote is a document that details the total price of a job. It breaks down the costs of the job for your recipient so they can evaluate their budget and needs before making any commitments. <\/p>\n\n\n\n
The cost that the recipient sees on the quote is essentially the price you\u2019re guaranteeing for the job.<\/p>\n\n\n\n
Estimates and quotes often get confused for one another, but they have different purposes and consequences.<\/p>\n\n\n\n
Put simply, the main difference between an estimate and a quote is that an estimate is a guess, while a quote is an exact price. <\/p>\n\n\n\n
For the most part, estimates are subject to change throughout the job, whereas a contractor must deliver the agreed upon services at the price they quoted.<\/p>\n\n\n\n
Here\u2019s a common question, even among business owners: \u201cIs an invoice the same as a quote?\u201d The answer is no.<\/p>\n\n\n\n
The difference between a quote and an invoice is that a quote is given before the job begins, while an invoice is given upon completion of the work.<\/p>\n\n\n\n
However, quotes and invoices often contain the same information, making the quotation-to-invoice process easy.<\/p>\n\n\n\n
Now that you know the difference between quote and invoice documents, let\u2019s explain why quotes are important.<\/p>\n\n\n\n
It\u2019s important to recognize why quotes are used by contractors before trying to create one.<\/p>\n\n\n\n
Quotes are a crucial part of doing business. They let potential and existing customers know what they can expect from you in every job you take on.<\/p>\n\n\n\n
Quotes will also provide you with an invoice breakdown for when you complete the job. For this reason, it\u2019s important to know what you need to include in your quotes.<\/p>\n\n\n\n
As mentioned, the invoice and quotation for a job often include the same information. So, if you know what to put in a quote, you\u2019ll also have a strong framework for the subsequent invoice. All you have to do is add payment information. <\/p>\n\n\n\n
Here\u2019s how to break down a quote into its essential parts. It should consist of:<\/p>\n\n\n\n
Now that we\u2019ve covered how quotes work and what they should look like, let\u2019s take a closer look at how to create one.<\/p>\n\n\n\n
Learning how to create a quote isn\u2019t complicated. In fact, creating quotes is as simple of a process as you choose to make it. <\/p>\n\n\n\n
You can make a quote by following these four steps:<\/p>\n\n\n\n
Sure, you can make your quotes from scratch, but doing so is tedious and time-consuming. Work smarter and not harder by using a quote template.<\/p>\n\n\n\n
There are many quote templates available online, and you won\u2019t need to dig far to find the best one for your business. You’ll even find an excellent one at the end of this article!<\/p>\n\n\n\n
For even more efficiency, choose a quote template that you can easily repurpose into an invoice later on. This is especially important for fast-paced businesses with many moving parts, as is the case with contractors<\/a> who have to juggle several invoices at the same time.<\/p>\n\n\n\n Once you\u2019ve found your quote template, the next step is to add your customer details. This should include their name and contact information.<\/p>\n\n\n\n It\u2019s important that this information is accurate for your records, and to demonstrate professionalism to your potential customer. So be sure to double check this step!<\/p>\n\n\n\n Your quote should look similar to an invoice breakdown, in that you should put everything you\u2019re charging for on an itemized list, including materials and labor.<\/p>\n\n\n\n Each line of the list should include:<\/p>\n\n\n\n At the end of this list, you should include the subtotal, tax, and grand total.<\/p>\n\n\n\n Chances are, not all of your customers will know how to pay a quote, or whether they\u2019re supposed to pay it at all. So, it\u2019s important to clearly state terms and conditions in your quote. This includes:<\/p>\n\n\n\n Once you know how to create a quote, the next question is: when do you send your quote?<\/p>\n\n\n\n Just as important as knowing how to create a quote is knowing when to send it. The short answer is that you should send one any time that you receive a request for a quote.<\/p>\n\n\n\n Regarding the timeframe, you should aim to send your quote within three days of the request. Any longer and your prospect will start considering your competition or lose interest in the project entirely.<\/p>\n\n\n\n Also keep in mind that you might end up having to send quotation reminders<\/a> if you don\u2019t hear back from a prospective customer.<\/p>\n\n\n\n Before starting your quote process, make sure you keep these common pitfalls in mind:<\/p>\n\n\n\n As mentioned, using a template is a great way to streamline your quote process. Templates minimize the amount of manual data entry you have to do so that you can minimize mistakes and push out quotes faster.<\/p>\n\n\n\n Additionally, consider investing in software to automatically create and deliver your quotes for even more efficiency. Software also makes it easier to keep track of your quotes, approve them, and even capture digital signatures.<\/p>\n\n\n\n Watch the video to see how you can automate your estimates approval process and speed up the quote-to-cash cycle.<\/p>\n\n\n\n2. Add your customer details<\/h3>\n\n\n\n
3. List the relevant services<\/h3>\n\n\n\n
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4. Include terms and conditions<\/h3>\n\n\n\n
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When to send a quote<\/h2>\n\n\n\n
Avoiding common quote mistakes<\/h2>\n\n\n\n
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Streamlining the quote process<\/h2>\n\n\n\n