Business Essentials: What to Include in a Winning Quote

A quote is used to provide clients with an estimate of the price of the work a small business will be conducting. Everyone from tradies to wedding photographers to caterers will provide a quote to win new business.

A good quote is easy to understand and details the costs involved, such as labour, materials, and any other expenses related to the job. A quote is provided to a customer before any work begins, establishing the terms of the agreement between the business and the customer. A well-crafted quote can help a company win new clients, build trust with existing clients, and establish clear expectations for both parties.

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"A good quote is easy to understand and details the costs involved, such as labour, materials, and any other expenses related to the job"

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What do you need to include in a quote?

When creating a quote for a customer, small businesses should include the following details: 

• The business's logo, name, address, and contact information 
• The customer's name and contact information 
• A detailed description of the work or services
• The cost of the work or services
• The breakdown of any materials or labour costs 
• The timeline for completion of the work or services 
• Any warranties or guarantees that the business is offering 
• The terms of payment, including taxes
• The terms of a deposit (if applicable) 
• A validity period that outlines how long the quote is valid for 
• A method for accepting the quote
• Final payment due dates.

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It's important to keep in mind that quotes are legally binding documents. Once a customer accepts a quote and the work or services commences, the business must provide the work or services at the quoted price.

To ensure compliance with tax laws, small businesses should keep accurate records of all quotes that they provide to customers. These records can be used for tax purposes and can also be used to demonstrate that the business provided a quote for the work or services in case of any disputes.

‍Thriday is an excellent tool for quoting as you can personalise your invoice template according to your brand, easily create or save billable items, and quotes can be sent as a PDF, weblink or SMS to your clients. Because Thriday is cloud-based, all your quotes are securely stored online and available from any internet-enabled device. 

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Quoting software helps to ensure you stay compliant

It's crucial when quoting, to use a tool like Thriday for the following reasons: 

1. Trust and credibility: By utilising professional quoting software, a small business can demonstrate to its customers that they are credible and trustworthy. This helps establish a positive relationship with the customer and can lead to repeat business and positive word-of-mouth recommendations. 
2. Manage expectations: A good quote provides a detailed outline of the work or services to be provided and the cost. This helps manage customer expectations and ensures no misunderstandings or surprises when the job is done. 
3. Legal and compliance: Quotes are legally binding documents. Once a customer accepts a quote, the small business must provide the work or services at the quoted price. This can help protect the small business in case of disputes or disagreements. 
4. Financial Planning: A small business can better predict and plan for its future income and expenses by providing customer quotes. With a detailed understanding of what work is involved, determining the number of resources or tools required is much easier. 
5. Record keeping: A small business should keep accurate records of the work or services provided, the quote, the invoice and any other relevant documents. These records can be used for tax purposes and can also be used to demonstrate that the business provided a quote for the work or services in case of any disputes. 

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How to stay in touch with your client after issuing a quote

Once you have issued a quote, the process doesn't stop there. When the client is reviewing and considering your quote, you need to stay in touch to ensure things move smoothly. Here are some great techniques for converting more quotes to deals during this stage: 

• Respond quickly: Respond quickly to quote requests as soon as possible, ideally within 24 hours. This shows potential clients that you're responsive and reliable, which can help build trust and increase your chances of winning business. 
• Personalise your quotes: Tailor your quotes to the customer's specific needs. Use their name, include details about their business, and highlight how your products or services can help solve their particular problems or meet their unique needs. 
• Be clear and concise: Make sure your quote is easy to understand and clearly outlines what you're offering, including the scope of work, pricing, and any relevant terms and conditions. Avoid using jargon or technical language that the customer might not understand. 
• Be competitive: Make sure your pricing is competitive without compromising on quality. Research your competitors to ensure you offer a fair price for your products or services. 
• Follow up: After sending a quote, follow up with the customer to see if they have any questions or concerns. This shows that you're committed to their business and can help you build relationships with them. 

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"Respond quickly to quote requests as soon as possible, ideally within 24 hours. This shows potential clients that you're responsive and reliable"

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What to do once a quote is approved

Once a customer approves a quote, the small business is obligated to provide the work or services at the quoted price. This means that the small business should begin to act to complete the job or services as outlined in the quote. Some of the steps that a small business should take once a quote is approved include the following: 

• Arrange resources: Schedule the people required to deliver the project on time. 
• Ordering materials or equipment: Order anything you need to ensure the project is delivered on time. 
• Schedule work: Coordinate timings with the client to commence the project. 
• Communication: The small business should always keep the customer informed of progress. 

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Once the work is completed, the small business should invoice the customer for the provided work or services. The invoice should match the quote, the business should include GST if applicable, and the invoice should consist of all details of the work or services provided.

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Quote FAQs

What is a quote?

A quote is a document that outlines the estimated cost of a product or service that a business will provide to a customer.

How do I create a quote?

You can create quotes using software like Thriday that automates the process and tracks client approval.

What information should be included in a quote?

A quote should include a description of the product or service being provided, the cost of the product or service, any applicable taxes or fees, the payment terms, and any additional terms and conditions.

How long is a quote valid?

The validity of a quote depends on the terms and conditions set by the business. Generally, a quote is valid for 30 to 90 days.

Can I change a quote after it has been sent?

Yes, you can change a quote after it has been sent, but you should inform the customer of any changes made.

What happens after a quote is accepted?

After a quote is accepted, the business should send an invoice to the customer. The invoice should include the same information as the quote but should be converted into a billable document with payment details.

Winning quotes as a small business requires a combination of detail, responsiveness, clear communication, competitive pricing, and excellent customer service. By offering professional quotes, you will generate more business and deliver better client outcomes. By including all relevant details, small businesses can ensure that they follow Australian tax laws and provide their customers with a clear and accurate representation of the cost of the work or services they will be providing. Focusing on these areas can increase your chances of winning business and growing your customer base.