Importance of Price Quote and Estimate

A Price Quote is The Fixed Offer

This is the final offer, in a written document that you propose to your client that cannot be changed once signed and agreed upon legally. Even if the amount of work exceeds what is stated on the agreement or any other condition pertaining to the deal.

The difference between feast & famine, is determined by knowing the difference between a quote and a template. Charging the right amount for your business is paramount to reaching your goals of revenue. This is the deciding factor in how much your time, product or service is worth. Getting it right is essential to determine whether you are thriving or surviving in business. It is very easy to over-estimate and lose a client, or under-estimate and not lose only money and credibility but also your self-respect. To keep that intact, this guide is ideal in making the right pricing decisions for your hard work.

How Important Is A Quote for My Business?

• It helps establish a practical communication in the relationship between the buyer & seller on the terms of the transaction- that make it easy to reach an agreement.
• It gives you an insight on how much your good/service is worth so that you can optimize your pricing more accurately in a future endeavor.
• They help to keep your services and efforts within reason when charging a customer- avoiding providing more than necessary for the amount.
• A quotation template helps you hold a deal in place, making both buyer and seller accountable to the terms & conditions agreed upon.

What sets Quotes and Estimates Apart?

An estimate is the rough prediction of how much the service/goods will cost the customer. It has less legal standpoint to it. Making it easy for any of the parties to terminate it freely. This is done before a final quot.

• It is a chance for the seller to gain an idea how much it will cost to work on a certain project- for the services/goods and taxation.
• For the buyer- It is ideal to negotiate the terms before the final quotation price.

An estimate has no legal value in most states- both parties can change or walk away from it at any time they wish to. Once a quotation is signed, both parties cannot back away from the transaction- unless they have a mutual understanding that allows them to redraft the agreement.