Transparent pricing makes the difference between getting or losing a sale. Sure, you could give customers a quick price estimate, but these days, they want more than that. Most people want detailed quotes that answer their questions and show that you understand their needs.
A strong sales quote goes beyond listing prices. It outlines what your service includes, explains the terms, and builds trust. It’s the key to giving buyers the confidence to move forward, knowing they’re making the right choice.
While this might sound complicated and time-consuming, it doesn’t have to be. With the right tools and approach, you can easily create professional quotes that help close more deals. Here’s how.
Getting started with sales quotes
Sales quotes are an important part of business, especially in service industries. Whether you sell software services, consulting hours, or construction work, a quote helps turn interested prospects into paying customers.
Quoting is most often used when there isn’t a fixed price—typically for customizable services, varying project scopes, or unique client needs. Think of IT companies quoting a system setup, cleaning services pricing a commercial contract, or marketing agencies outlining a campaign.
A quote is different from a regular price list or estimate. It’s a formal offer that spells out precisely what you’ll provide and what it will cost. Once accepted, it often becomes part of the service-level agreement.
When to begin the quoting process
You know a sales quote is important, but when exactly should you send one? Timing is everything. Sending a quote at the right moment can be the difference between piquing a prospect’s interest and having it fall flat. Here are the key moments to prepare one.
- After a call or demo: After a discovery call or demo, you’ll have a clear picture of your prospect’s challenges, budget, and timeline. With these details, you can put together a targeted quote.
- After a pricing request: When a prospect requests pricing, they’re showing serious interest. A quick response with a detailed quote can keep the momentum going.
- At contract renewal: It’s a good opportunity to review and update pricing during contract renewals. You can adjust for changes in service levels, add features, or update terms.
Don’t overlook these key moments. Get the timing right, and you’ll position yourself to win new business and keep current clients happy.
Types of sales quotes in business
Not every price quote looks the same. Depending on your business and what you’re selling, you might use different types of quotes to match the situation. Let’s look at the 3 most common types.
Price estimate
A price estimate isn’t the kind of quote most people seek when they’re ready to buy. It’s more of a starting point, offering a general idea of costs without going into the specifics.
Here’s when you might use it:
- To start the conversation: An estimate can help gauge the client’s budget and interest level without committing to a firm price.
- When details are fuzzy: If the project scope is still unclear or there are a lot of unknowns, a price estimate gives you some wiggle room.
- To avoid sticker shock: A price estimate can prepare the client for the potential cost and avoid surprises down the line.
Just remember to be up front about the fact that it’s an estimate. Ensure the client understands that the final price will vary depending on the project scope and other details.
Fixed price breakdown
A fixed price breakdown is the way to go to eliminate confusion and give your clients a clear picture of the costs involved. It’s a detailed quote that itemizes every element of the project or service with a specific item price breakdown. Depending on the industry, you might also see this breakdown called a job quote, price quote, or service quote.
Here’s when you might use it:
- For well-defined projects: A fixed-price quote works well when the scope of work is crystal clear and unlikely to change.
- To build confidence: Providing the exact cost up front helps prospective clients feel secure about costs and more comfortable moving forward with your services.
- To simplify decision-making: A clear breakdown of costs makes it easier for clients to understand the value they’re getting and accept your offer.
Despite the fixed price, treating the quoting process as a team effort is best. Be open to discussing the client’s needs and adjusting the scope or payment terms.
Request for quotation
Now, this one’s a bit different. A request for quotation (RFQ) isn’t a quote you send. It’s one you request from others. It’s typically for when you have a specific need and want to compare multiple vendors’ services and prices.
Here’s when you might use it:
- For complex projects: An RFQ is useful for large or complex jobs, like building a new office or setting up a new software system.
- When comparing vendors: If you need a specific product or service, an RFQ lets you compare vendors’ pricing, features, and what they offer.
- For formal procurement: Big organizations, like government agencies, often use RFQs to ensure fair competition and follow the rules.
When creating an RFQ, be specific about what you need. Including all the necessary details makes the quotes more accurate and easier to compare.
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What to include in your product or service quote
You’ll want to create a fixed-price sales quote with a detailed cost breakdown for most projects. It’s the most thorough way to present your offer and helps prevent confusion later. Here’s what to include in this document.
- Your company information: Your business name, contact details, and logo
- Client details: Their name, company, and contact information
- Quote number: A unique identifier for tracking
- Issue date: When you created the quote
- Product or service description: Clear details about what you’re offering
- Exclusions: Items the service does not include
- Cost breakdown: An itemized list of prices and any additional fees
- Deadline and milestones: When you’ll deliver and key project dates
- Payment terms: When and how you expect payment
- Signature lines: Space for both parties to sign and date
Free quote templates
A free template can be a fantastic resource for creating sales quotes. It’s easy to fill out, gives you a solid starting point, and saves you time and effort compared to building a quote from scratch. Plus, using a template keeps your quotes consistent and professional.
You can find free quote templates in various formats, including Word documents, Google Sheets, and PDFs. A simple search for “free quote templates” or “sales quote templates for small businesses” will yield numerous results. You can also check your preferred word processor or spreadsheet program for built-in quote templates.
Once you find a template you like, customize it to fit your business needs. Add your logo, adjust the formatting to match your brand, and modify sections to include the information that matters most to your clients.
Steps to preparing and delivering an effective sales quote
Sending a sales quote can be a make-or-break moment in the sales process. Avoid common pitfalls and maximize your chances of success by following these 5 steps.
Step #1: Gather information
Before you write up a quote, you need to know what your client wants. The best way to gather this information is through a discovery call or meeting.
During your call, be sure to:
- Ask about the client’s goals and challenges
- Discuss their project budget range
- Confirm key deadlines and milestones
- Get clear on technical needs
- Find out who makes the final decision
Take good notes during these conversations. You’ll want to refer to them when creating your quote to ensure you haven’t missed anything important.
Step #2: Choose a free job quote template
If you haven’t selected and customized a template for your business, now’s the time. Pick one that matches your project type and how you want to present your pricing.
For example, a cleaning service might need a simple hourly rate template, while a marketing agency could use a template that breaks down project phases. A contractor might want a template with detailed line items for materials and labor.
When looking at templates, check if they’re easy to read and understand. Is everything laid out in a way that makes sense? Is there enough white space between sections? Will it look good with your brand logo and colors? Pick something simple and professional that puts the focus on your information.
Step #3: Personalize the sales quotation template
Fill in each section of your template using your notes from the discovery call or meeting. Take your time with this step. It’s better to be thorough now than have to send a revised quote later.
Double-check that you’ve included everything your potential client mentioned. Small details show you were listening and help build trust. Now is also a good time to confirm that your pricing calculations are correct and that you’ve accounted for all parts of the project.
Once you’ve filled everything in, read through the entire quote carefully. Check for typos, missing information, or unclear sections. Even minor errors can make your business look unprofessional.
Step #4: Send the price quote promptly
Speed matters when sending quotes. The longer you wait, the more likely your prospect will go to someone else or lose interest. Getting your quote out within 24-48 hours of your conversation is so important.
When you send the quote, include a friendly note thanking the prospect for their time and outlining any next steps. Let them know if they need to sign and return the quote, schedule a follow-up call, or make a deposit to get started. You want to make moving forward with the project as easy as possible.
Step #5: Schedule a follow-up meeting
Don’t just send your quote and wait. Plan to follow up within a few days to answer any questions and keep the conversation moving. A quick check-in shows you’re interested in their business and allows you to address any concerns immediately.
To schedule this chat, consider your client’s preferences. A quick follow-up email is often the easiest way to start. You could say something like, “I hope you had a chance to review the quote I sent over. I’m available for a call next week if you’d like to discuss it in more detail.”
From there, you can figure out if they prefer a phone call, video chat, or in-person meeting. Be flexible and find a time that works for both of you. Once you’ve agreed on a time, send a calendar invite or an email to confirm.
Key takeaways
- Craft detailed quotes: Consider going beyond simple estimates by providing detailed price breakdowns, clear terms, and personalized messaging.
- Select the right quote type: Match your quote format to your client’s needs, from rough estimates to detailed fixed-price breakdowns.
- Use templates to save time: Start with a free template to keep your quotes consistent and respond faster to opportunities.
- Deliver quotes promptly: Send quotes within 24-48 hours to keep momentum going and show you’re reliable.
- Follow up after sending: Schedule a follow-up meeting to review the quote and keep the deal moving forward.