Overview: What is a quotation?
In the field service industry, a quotation is a document that a seller provides to a potential customer that lists what services will be provided and what the estimated price will be. The document is provided before the customer makes a purchase in order to show the customer a breakdown of what they will get and for what price.
The final cost of the job may differ from the quotation if unforeseen factors arise, such as an increase in the cost of materials, a delayed shipment, or additional work requested by the client. A quotation typically includes a price breakdown, details of the deliverable, and a timeline, if required.
How to prepare a quotation for your work
When you provide a quote to your customer, you are telling them what you intend to do, how you intend to do it, and how much it will cost. Therefore, an official quote should be well-prepared and researched. Here is how to prepare a proper quotation for your next job.
1. Assess client needs
Get extensive details from the customer on exactly what the client requires — the more detail, the better. Consult with them on their approach and tell them what you can and can’t do. Get input from your internal team and look at previous solutions provided to clients with similar needs. Then, formulate a tailored solution that ensures all parameters are met.
2. Evaluate capacity
Even if you understand what the customer needs, that doesn’t mean you should promise them the sun and the moon. Evaluate your own capacity and honestly assess your ability to perform to the customer’s expectations. In business, one should always underpromise and overdeliver.
Look at your current workflow and make realistic estimates on when you could complete items, and if you wouldn’t be able to realistically complete a key task, be upfront with the customer on that.
3. Outline service provided
With client needs understood and capacity evaluated, it’s time to start putting together the document. Outline what service your company will provide. Be detailed and describe exactly what your client can expect to happen and when. Be highly transparent and itemize services provided. Describe precise hours, outline costs, and list any potential risks that could cause the cost or schedule of the project to balloon.
4. Outline terms and conditions
Your quote should generally be a fixed price, but it should be open to flexibility depending on what happens over the course of the product, so outline the terms and conditions so you and the client are on the same page. Account for any variations and external circumstances that could impact the project, and describe the conditions if additional work is required.
5. Special notes
You now have a basic quotation, but you can go a step further with some special notes, depending on the project. This may include timelines, a completion date, payment terms, or even a summary of the project scope. It’s up to you. A quotation is your way of communicating with your client, so create one that is tailored to your relationship.