Send a customer a vague price over text and you will spend the next week answering questions. Send them a clean, itemised quotation and you often get a yes the same day. That gap is one of the quiet advantages of running an organised business, and it costs nothing to build. Here is exactly how to write a quotation that does the selling for you, drawn from the thousands of quotes that move through Invoxaco every week.
Quotation or estimate? Know which one you are sending
A quotation is a written offer that fixes the price for a specific piece of work. Once the customer accepts it, that number is locked. An estimate is your best guess, and it can shift as the job unfolds. The difference matters more than most people assume. When you quote a kitchen fit-out you are making a promise; when you estimate it you are opening a negotiation. Use a quote when you can define the work precisely, and an estimate when there are real unknowns you cannot price yet.
What every quotation should contain
A good quote leaves no room for "I thought that was included". Over the years the same handful of elements show up on every quote that gets accepted without a fuss:
- Your business name, logo, contact details and tax number, so it reads as legitimate.
- The customer's name and a unique quote number for your records.
- The date, and a valid-until date. This one line protects your pricing.
- An itemised list: each product or service on its own row with quantity, unit price and line total.
- Tax, any discount, and the final total shown plainly.
- Terms: payment schedule, what is included, and just as importantly, what is not.
The six steps we follow every time
Writing a quote is not complicated once you have a routine. This is ours:
- Start with your branding, so the first impression is professional.
- Add the customer and a quote number.
- Break the job into clear line items. Specific wording now prevents arguments later.
- Enter quantities and prices, and let the totals, tax and discounts calculate themselves.
- Set a valid-until date and spell out your terms and exclusions.
- Send it as a PDF, then follow up in a few days rather than waiting and hoping.
How to price without underselling yourself
Here is the part people get wrong. They price to win the job instead of pricing to make a profit, then quietly lose money delivering it. Add up your direct costs first: materials, labour, subcontractors. Layer in the overheads that quietly eat your margin, like software, insurance and travel. Then add a margin you are actually comfortable with. If a customer only ever chooses the cheapest quote, they were never going to be a good customer anyway. Protect the price with a validity window, usually 14 or 30 days, so a quote you sent in a quiet month cannot be held against you when your costs rise.
Turn the yes into money
The moment a customer accepts, reuse the same line items to raise an invoice. Do not re-type them. Re-typing is where the wrong figures creep in, and it makes you look disorganised. A tidy flow from quote to acceptance to invoice also signals to the client that paying you will be just as smooth as buying from you, which quietly encourages them to pay on time.
The small mistakes that lose jobs
Most lost quotes are not lost on price. They are lost on presentation. Leaving off a valid-until date invites customers to hold you to old numbers. Vague descriptions like "website work, $2,000" invite scope creep. Slow delivery lets a competitor get there first. And forgetting to follow up is the biggest miss of all, because plenty of jobs are won on the second contact rather than the first. Fix those four habits and your acceptance rate climbs without touching your prices.
Frequently asked questions
What is the difference between a quote and an estimate?
A quote is a fixed price once accepted. An estimate is an approximate figure that can change. Quote when the scope is clear; estimate when it genuinely is not.
How long should a quotation stay valid?
Two to four weeks suits most businesses. It shields you from rising costs and gently nudges the customer to decide rather than sit on it.
Do I have to show tax on a quote?
If you are registered for VAT, GST or sales tax, show it clearly and state whether your totals include or exclude it. Ambiguity here is a common source of disputes.
Can I change a quote after sending it?
You can issue a revised version with a new date while the original is still valid, but do not change an accepted quote without the customer agreeing in writing.
Ready to send your next one? Build a branded, professional quote for free with the Invoxaco Quotation Generator, then convert the accepted version straight into an invoice.