In an ideal scenario, price quotes work like this:
you give your client a detailed quote, they accept it immediately,
and your business can start doing the work.
In real life, there may be more back-and-forth.
But if you talk through the details of each job with your clients before you create your quotes,
they can be very effective at converting interested clients into committed customers.
This video covers what details to include in a price quote,
and how to use quotes effectively.
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So when would you send a quote?
Wait until you've had a conversation with a client about details
like the scope of the job, timelines, and your typical rates.
You want to be sure they're really interested in working with you.
But once the client has expressed interest in a quote,
send one as soon as possible.
Here's what to include in your quote.
In addition to contact details for both parties and the date,
unique quote numbers can make it easier for everyone to keep track of any changes
or quotes for multiple jobs.
A "Valid Until" date is a handy way to protect your business in cases where
your cost to do the job might go up if the client doesn't commit in a timely manner.
The pricing section is the real meat of your quote.
Try to include enough detail so that everything is clear,
but not so much that things get confusing.
Unlike an estimate, with a quote you're committing to the prices listed,
so make sure you've carefully calculated the costs for the job!
List any discounts separately so your clients understand they're getting a great deal,
and include any applicable taxes, along with the total of course.
Next include payment terms,
which is when and how you expect to be paid for the job.
Additional terms and conditions will vary for each business.
As an example,
what will happen if either party calls off the job once it's underway?
You may want to consult a lawyer to make sure you're covering yourself properly,
but do try to use plain language.
Once your quote is complete, sign and send to your client.
Be sure to follow up within 2-3 business days if you don't hear back -
it's up to you to nudge them along to a commitment.
Definitely call them before the "valid until" date.
If all goes well, they'll accept the quote without adjustments,
but you may still need to negotiate a bit.
When you're both happy, get their acceptance in writing,
either by getting an actual signature on the quote itself, or electronically -
cloud accounting software that includes the ability
to send and accept quotes can really help with this.
If the client rejects your quote, don't miss the opportunity to find out why.
What competitor did they choose instead?
What factors would encourage them to work with you next time?
Ask the right questions and you may be able to improve your entire sales process moving forward.
Thanks for watching, and be sure to check out our other small business guides!
