What if the customer backs off and refuses to pay you the amount agreed upon before the start of the project?
Isn’t it too much of a risk to rely on a handshake?
Yes, you are right. You should have it on a piece of paper that documents your price offering.
And if you are looking for the same, you have stumbled upon the right blog.
In this blog, we will give away free quote templates. So stay tuned till the end and how quotes help your business improve.
Table of Content
What is a Quote and Where to Use It?
A quote is a document that lists out the jobs and services a vendor will provide, and the price for the work done in the project to be begun soon.
The price will only remain valid for a certain time frame.
For example, a business owner can mention “Valid for 30 days” in their quote.
Once the quote has been sent and agreed upon by the vendor and the client respectively, the vendor has to make sure they do the work for the price mentioned in it. And, the client is bound to pay the amount rightfully.
However, the quote is a contract yet, the price in the quote should not be confused with the final price.
The actual amount in the final invoice might vary from that in the quote due to valid reasons, such as a change in the scope of the project. In such cases, the vendor has to generate a new quote to update the contract.
A small business owner sends a quote to confirm that the client gets an idea about the amount to be paid at the end of the service.
It is generally used to:
- Aware the client of the final amount to be paid at the end of the project
- Compete with the competitors for acquiring a project
- Document the price offering
Try our free online invoice generator today!
Whether your business is in construction, landscaping, consulting, photography, auto repair, or the medical field, invoicing takes way too long. That’s why we’re here. InvoiceOwl makes your invoicing faster and simpler so you can get paid promptly and without the hassle.
What is the Difference Between a Quote and an Estimate?
Now that you know what a quote is, you might need to know the difference between a quote and an estimate? And which should you use for your business?
So, let’s discuss the difference between a quote and an estimate.
|Basis of Comparison||Quote||Estimate|
|Purpose||To finalize an amount before the begging of the service||To give an approximate idea about the amount|
|Accuracy||The final price on the invoice has to be exactly the same||The final price on the invoice can vary up to 10% – 15%|
|Significance||The client has agreed to hire the service provider||The client is showing interest in hiring the service provider or just running market research|
The bottom line is that quotes are more enforced compared to estimates, they can easily be transformed into the final invoices. Now, you might be thinking, if the quote shows the price to be paid, how is a quote different from an invoice?
What is the Difference Between a Quote and an Invoice
An invoice and a quote are almost similar, except for a few minor differences which are:
|Basis of Comparison||Quote||Invoice|
|Time of generation||During the timeline of the project or at the end||To give an approximate idea about the amount|
|Purpose||Acknowledgment of the amount to be paid||Collection of the due amount|
|Validity||Till the validity date||Until the amount is paid|
|Elements included||Validity date||Due date|
Why Do You Need Quote Formats?
Creating a quote from scratch every time is mundane and tedious. Therefore, the quote format is used to save time and energy.
To create multiple quotes easily, download one of the free templates available online. There are lots of templates in different quote formats and for different industries that are customized to niche-specific requirements.
Moreover, a quote format reduces the possibilities of human error and maintains consistency too.
So, are you already excited to use them? Then let’s discuss the major points to keep in mind while using a quote format.
What are the Elements to Include in a Quotation?
A quote template is almost exactly the same as an invoice except for the following points:
- Termination Date: A quote should have an “Expiration Date” or “Valid until Date”, after which the quote template is no longer valid. That means the vendor is not bound to any prices quoted after that mentioned expiration date.
- Vendor Contact Information: In case they have any kind of queries. It will be easier for clients to contact the vendor for the contract. If you are converting a sales invoice into a sales quote, you need to include a “Salesperson” field, in this field you need to include a person’s contact details who has prepared the price quotation template.
- Terms and Conditions: You need to specify the payments’ requirements and other terms and conditions as well. You can include it in a separate section named “Terms and Conditions”.
- Customer Signature: A quote template should have a place for the customer to sign their name and that indicates acceptance of the quote along with the terms and conditions.
But signatures are not mandatory to have. Most small business owners would prefer to email the sales quote and then ask for a sign of acceptance via email.
How to Add Discounts?
Client discounts are a common way to help attract a new customer to purchase any kind of goods or services from you. Your customer might be requesting price quotes from multiple vendors, so your ‘new client discount’ might be the cherry on top that will boost up your sale.
You can include discounts by entering the description for the discount in a separate section and reduce the discounted amount from the total costs in your invoice.
You also might want to specify the details in an email that you shall give the client an additional discount on the products if they accept your free quote by a certain date.
So, are you ready to download some Quote templates?
Here are the free templates for you to grab.
Free Quotation Template
Using any free quote template of the following will help you create professional quotations and help your business to boost the conversion rate.
Price Quote Template
Want to quote a price to your clients professionally? Download this price quotation template and create unlimited price quotes for your business within minutes.
Sales Quote Template
Want your clients to take your sales pitch more seriously? Download this template to add a professional quotation with your emails. It will help you win prospects’ trust and help you boost your sales.
Business Quote Template
The business quotation not only states the price and services to be performed. It also represents your brand. Thus, use this template and customize it to harmonize your quotations with your brand image.
What is the purpose of a quote?
The purpose of a quote is to acknowledge the cost for the goods and services along with the payment terms and conditions. In return, customers need to send the confirmation of an agreement of the quote to the vendor. After getting the confirmation of the price quote template, vendors can start working on it.
What is a pricing quote template?
A price quote template delivers a fixed price quote for goods and services. All the information is given to the client by a seller or service provider and can be either verbal or written. The price quotes stated in the price quote templates are only valid for a certain period and can’t be changed once the client accepts and is legally binding into it.
How do you write a price quote?
As we discussed in the blog, writing a quotation template is very easy. You just need to mention the following:
- your company’s name
- contact information
- tax registration number
- quotation number
- quotation date
- legally binding payment terms
- name of the recipient
You must write “Quote” or “Quotation” at the top of the page. In the quotation template body, you need to describe the proposed goods or services and provide pricing information.
Create Professional Invoices Online Easily and Keep On Top of Your Finances
InvoiceOwl is a feature-rich invoicing app that helps small businesses, freelancers and contractors to create invoices on-the-go and get paid quicker!
We hope this article has helped you to understand how a quote template helps you to enhance your overall business.
Other than that, we have also discussed almost all the important points related to it like what is a quote, what is an estimate, quote vs estimate, and many other important topics.
So, if you are looking for free quote templates and how to use these templates, then you can explore our guide on invoicing that has covered in-depth information.
In addition, you can explore our free invoice generator to create an invoice, following different rules and points.