Quote or Estimate?

May 18, 2023 | 0 comments

We spend a good deal of time writing estimates or quotes for potential customers.
However, there can be a lot of confusion between the two.

Contrary to what you might think, there is a world of difference between providing a quote and giving an estimate.

For small businesses which provide any kind of service (rather than a set price product as shops do) providing customers with an idea of what they can expect to pay for a particular job is a fact of life.

It can be a time-consuming, thankless job 

What’s the difference between an estimate and a quote?

The first thing to understand about quotes and estimates is that they are NOT just two different names for the same thing.  Estimates and quotes each have distinct uses, benefits & disadvantages. Knowing these is key to avoiding problems that can cost you time, customer goodwill, and even money.

Let’s look at estimates, first:

What’s an Estimate?

An estimate is basically a ‘guesstimate’ or rough, educated guess based on what a job MAY cost. Often it is supplied either before you know all the details of a particular piece of work (such as during an initial call from a prospective new customer) or during a site visit.

Estimates are your first thoughts on costs and can change drastically when you get further information when unexpected complications crop up during the work or the scope of what you have been asked to do increases.

What’s a Quote?

A quote (or quotation) is an exact price for the job being offered. As such it is fixed and CANNOT be changed once it has been accepted by the customer (unless the customer changes the amount/type of work required or you discover something completely outside of the scope of what was agreed).

Quotes are only issued after an onsite visit or where you are confident that you have established exactly what is needed.

Understandably, quotes give customers peace of mind; safe in the knowledge that they know exactly how much the work will cost before the job begins.

Estimate or Quote? Key Points to remember…

·         Estimates are a rough idea of price. They should be used as an initial GUIDE PRICE ONLY.

·         Quotes are legally binding and should ONLY be used when you are certain of the costs involved.

For more information please get in touch

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