What is actually a quote?
A quote is the precursor of an invoice and an important part of the tendering process. It is an offer for a product or service that the customer can take up.
Producing one is part of day-to-day work in many trades — a handyman quoting for a refurbishment, for instance. It is a business proposal the customer can accept or reject.
The meaning of a quote
The definition is simple enough. An offer is drawn up from a customer request, with a view to concluding an agreement.
That is not the same as the offers a web shop or a store puts together on its own initiative — those are made without anyone asking. A quote responds to a specific request, and it can cover either a service or a product.
Clients often request quotes from several companies so they can compare them and choose the best option. Worth remembering when you write yours: it will most likely be read next to two others.
What a quotation must contain
- A description of the products or activities to be delivered.
- A price, stated as either fixed or indicative, and clearly marked as inclusive or exclusive of VAT.
- Any discounts that apply — see how can I apply a discount.
- A plan for the work, and the conditions under which that plan holds.
- A final date of validity for the offer.
- Terms and conditions, or a reference to your general conditions — see document conditions.
- A valid signature from the company.
The validity date and the conditions are the two most often left off, and they are the two that matter when a customer accepts three months later at a price that no longer works.
How do I create a quotation?
Creating a quote is straightforward. You can produce one independently in Word or Excel, or use an online accounting program.
It looks much like an invoice — you simply need to carry the points above into the document. So think about the preconditions and the validity of the quotation as well as the price.
An Invoice Office quotation
Invoice Office includes a free plan that makes creating quotations easy. All the documents — invoices, quotations and credit notes — meet the requirements of the tax authorities.
The step-by-step is in the help desk: create a quotation. And when the customer accepts, the quote converts directly into an invoice, so the lines, prices and tax codes are never retyped.
Curious? Start free and make your first quote today.