A business quotation (or quote) is a crucial document required to close a business deal successfully. The sellers need to provide prospects with a business quote. This gives clarity about the costs of products or services that the seller is offering to the prospect. Business quotations are sent as a response to the RFQs shared by the prospect. RFQs are put up by a prospective client for various sellers/suppliers to receive a detailed report of their offering.
How will you make sure that the customer chooses you?
By drafting the right quotation. Since quotes form the basis of a relationship between the client and the seller, it needs to meet certain standards. In this competitive market, multiple brands target the same cohort of target audiences, making competition fierce. This is why the moment you receive a request for a quote, you should start drafting it according to your customer’s requirements and your brand guidelines.
You can start with some research around the customer’s requirements. Refer to the RFQ shared by them for more details. You can look into previous business quotations that have worked for you.
Be sure of what you are offering to the prospective customer. There are similar documents like quotes that create confusion.
A quote, a proposal, an estimate, and an invoice are often used interchangeably, but they are not the same documents. These documents may serve similar purposes, but they do have different components, which are addressed below.
How is a business quotation different from a proposal?
Both business quotations and business proposals are used to give the prospect an idea about the goods/services you or your company offers. The significant difference between these formal offerings is that a quote addresses the deal’s quantitative aspects (quantity and price). A proposal talks about the detailed process of how the service will be offered or the product will be handed over by the seller.
A business quote comprises the exact quantity and pricing information of your company’s products and services. If you look at a sample of a simple business quotation, it will have a title page followed by a page with a table of products/services that have been requested by the client. And some standard terms and conditions and clauses which govern the quote.
Whereas, a business proposal is more comprehensive and text-heavy in comparison to quotes.
Read here to know more about how to write a business proposal in detail.
How is a business quotation different from an estimate?
A quote presents the exact pricing details, whereas an estimate is a rough idea of the cost of the product or service.
A quote becomes a legally binding document when the prospect accepts the offerings by signing the document. In contrast, an estimate has no legal boundaries as it does not include final costs.
Keep reading to know more about the key components and how to write quotes that persuade your client.
How is a business quotation different from an invoice?
Both quotes and invoices are forms of financial documents used in a business transaction. The striking difference between these similar documents is that a quote is sent before an order is made and is negotiable in some conditions.
Whereas, an invoice is sent by the seller after the purchase is done. It is the request for payment sent to the buyer and is non-negotiable, unlike quotes.
Components of a successful business quotation
A business quote’s objective is to persuade your customers to choose your offerings over others and finalize the deal. Consider the demands of your customer before structuring the quote to win them over.
Look for readymade quote templates available online. These templates will help you structure your quote correctly without missing any critical component.
Document management systems like Revv offer a wide range of templates to draft quotes across industries and services. These templates contain standard information that can be edited according to your customer’s requirements, like industry size, specific offerings, etc.
Here is a checklist of the standard components that a business quote contains:
The title page contains basic information like the company’s logo, your company’s name, the client’s name, and the business quotation’s name.
Here is an example of a Service quote title page from Revv for your better understanding.
Make sure to include details about the client who is going to receive the quote. Mention standard information like their name or the company’s name, their address, email-id, and contact numbers if available.
Your business quote should have all the necessary information about your organization. Provide the company’s name, company’s address, email-id, and contact numbers. You can also add a summary of how your company functions.
The date of issue and validity period
The date when you send a quote to the client is the date of issue. It is important to mention this in your business quote as quotes usually are limited-time offers. You can add a note saying ‘valid for a certain number of days.’
This information will create a sense of urgency resulting in a quicker response by the client.
A quote number
If your company uses accounting software, then it will automatically generate a unique number for your quote. If you do not use any such software, you can manually assign your quote a specific number. This will help you easily track and locate the quote in the future for reference.
Products/services in the business quotation
The client’s interest lies in the products and services that you or your company is offering. Ensure that all the offering details are listed clearly with its required pricing in the quote.
Consider the following structure while you describe the proposed products /services to the client in your quotation:
- See if you need one or more tables to list down different products and services. You can use multiple tables if there are different categories of products and services being offered
- Include columns for the name of the product/service, quantity, duration (if service), price, and the total amount, including applicable taxes
- You can add an extra column mentioning some details about the offering for the client’s better understanding
Here is an example of how to include your products/services in the quote for a client in the form of a table by using Revv’s document editor.
To get a basic idea of how a professional Service quote looks, you can visit Revv’s templates library and access vetted templates for your business.
You need to have an eye for detail while drafting the pricing structure. Leave no room for confusion as these pricing details will become the guide for all the future payments if the deal closes successfully. Don’t forget to mention all the applicable taxes along with appropriate rates that will get added.
Prepare a separate section for the cost breakdown. Include every possible detail before finalizing the quote and sharing it with the prospect. For example, if you own a SaaS company that has a tiered pricing strategy (that offers multiple packages), include the features of the package that you are offering to the client in the quote. Also, mention the validity period of the package with ways to renew the plan. This will eliminate any future disagreement between you and the prospective client.
Terms & Conditions
It is important to lay down the terms and conditions that will govern the overall agreement. There can be unfavorable conditions like goods delivered in bad condition, late deliveries, poor customer service, etc. These agreements help settle disputes between both parties.
Here, you need to mention the duration of the contract, the payment terms, clauses, if any (like Intellectual property, confidentiality, termination, limitation of liability, etc.)
Revv offers legally vetted templates that can save you time and hassle. It’s advisable to get your quotation checked by your legal counsel.
The signatures from both the parties involved in the business quotes act as a confirmation of the deal. You can leverage the e-signature feature in the Revv templates to get rid of the lengthy manual process of fetching the client’s signatures.
|Know more: To E-Sign or not to E-Sign|
Notes for clarity
If certain information in the pricing structure or the terms and conditions laid out by you is a bit complex, you can add small notes for clarity. These notes provide additional information along with the terms and conditions mentioned in the quote.
A business quote is usually a concise document, but you can include some extra information like discounts, other related services you offer, etc. as optional details. These optional details might increase your chances of persuading a prospective client to choose you.
For example, if you are a wedding planner, you can provide an added checklist of things that can be required in a wedding with the table of services that have already been requested by the client.
Here is an image of the wedding checklist in the wedding planning quote template by Revv for your clarity.
Tips to create a business quotation that attracts clients
To know how to write an ideal quote for a prospective client, here are some tips that can help you get started:
- Choose an easy to edit template: Select a template to create your business quotation as it saves time. It allows you to edit the template as per your brand’s design guidelines and the prospect’s requirements. With Revv’s easy to edit business quotation templates, you can customize your quotes as per your needs.
Here is an example of how to prepare a quote and customize it in Revv.
Add images, quote tables, texts, etc. with the easy-to-use building blocks. Drag and drop the element of your choice in the document.
- Stick to a proper structure: A document that follows an appropriate hierarchy of components reads better. Look into some previous successful business quotes for reference. Follow the same order as your reference to avoid errors and omissions. You can add other elements if required
- Be transparent: Make sure the prospect easily understands all the information that you present. Do not leave any scope for ambiguity as hidden details can result in a lack of trust. Be very accurate about each detail so the client can easily compare your offering with others. Clear communication in your business quotation is essential for client’s satisfaction
How to quote a client? -Checkpoints before you hit the send button
- Recheck the calculation: The main objective of any business quotation is to provide the prospect with relevant and accurate pricing details. Ensure all your numbers are on point before you send a quote to the prospective client. A wrong calculation can mislead the prospect
- Ensure proper formatting: Proper formatting means ensuring that your quote is laid out well in terms of appearance. Choose clear fonts, soothing colors (if required), and highlight headings and keywords. This will make your quotation presentable and easy to read
- Cross-check spelling and grammar: Your quotation must include simple language but it should be accurate. A tiny grammatical or spelling error can leave a bad impression on the client, reducing your chances of deal closure. Review the final quotation to avoid mistakes and errors
The final note
Writing attractive business quotes is vital to seek and retain potential customers. You need to create accurate and concise quotes that meet customer’s requirements to win the deal.
Revv provides an efficient document management system with various quote templates to offer your products/services professionally and easily to the client. You can pick a readymade template and customize it according to your needs.
You can share your quote created in Revv with the prospective client in the form of a link. This will enable them to view the document using their phones anytime and anywhere.
Check out all quote templates by Revv here and minimize your effort and time in writing a business quote.