Most businesses need quotations from other businesses, service providers and suppliers as it defines the scope of work/delivery of goods and the related price. A quotation template is a pre-made format where you can include pertinent information. Customers have budgets for particular jobs and your quotation provides them with the information that use to finalize a supplier or a service provider so it explains the importance that it has for you to get a new client.
What is a quotation template?
Once finalized, aquotation is a legally binding contract between a customer and a vendor to deliver services or products at an agreed-upon price. The use of this document in every business transaction carries with it the responsibility of obtaining as many quotations from both existing and prospective customers.
This is the reason why you must know the proper quotation format and you have this form easy to access and use when needed. When your customer accepts your quote, then you may create an invoice.
Information to include
Standard quotations samples generally include basic features. Here are the most important bits of information to include in this document if you plan to create a template for your business:
- The details of your business
By law, all quotations should display the names and the businesses that owe the money requested for. Along with these are the business numbers, contact details, and other relevant information that proves your business’ legality.
- The project’s total cost
It’s important to include the total cost of the project you will undertake. Describe the items in detail and directly. Give emphasis to any parts of the project that you have applied the costs to.
- The breakdown of the costs
In your quote template, you must break the total costs down for your customers to analyze. By breaking down the costs, you can match each phase of your commodity or project with the corresponding costs.
- Indicate costing variations
Let your clients know that costing is never constant. Some of these might significantly vary with regards to transportation, production, climate, weather, and other relevant parameters. Specify the variations to eliminate doubt.
- Include a provision for revision
The costs and terms in your quotation template may undergo some revisions from time to time. Make such provisions clear along with the details that surround them. This lays the foundation for the resolution of any disputes in the future.
- Indicate the terms of payments and references
Each payment made will get subjected to certain terms of references. It’s necessary to specify these terms of references to remove any doubts that might arise when executing the payments.
- Include the expiry date too
Quotation templates and other professional documents have an expiration date. Specify this expiry date clearly in the document. Also, specify if you or your client can extend the expiry date.
- Acceptance of the client’s signature
All of the involved parties to the dispute should affix their signatures to the document as these signatures give the document the legal acceptance it needs to fulfill its role. Together with these signatures are the dates when the parties signed the document.
- Indicate the acceptable modes of payment
It’s important to specify this information too. Clearly demonstrating the method used to make the payments contributes to the avoidance of doubt.
Creating a quotation template
Simply defined, a quotation template is a document that includes the set price for a project or a job. It is generally sent from a supplier or a vendor to an interested buyer. Learning how to writing a winning quotation is essential as it generates new business. Here are the steps needed to create this template:
- Choose a template
The creation of a winning quote template is a learning process. To facilitate matters, you can use a standard format and from such, create a professional-looking and detailed document that your prospective clients will love.
Customizing a template makes it even more professional-looking. For instance, you can change the colors or add your company logo.
- Add the information of the client
Make sure to provide the basic information about your client including:
The complete name of your client or the name of their business
The client’s business address
The client’s phone number and fax number, if applicable
The client’s email address
Also, include your contact information unless you’re using your company letterhead.
- Indicate the document number
If you’re using accounting software to create this document, this generates a quote number automatically as it adds increments of one to each new quote. Just make sure that you can edit the quote number if you need to.
- Include the date of issue
This refers to the date you sent your quotation forms to your client. Supplying this date is essential because such a document usually comes with an expiry date.
- Include the products or services you offer
Don’t forget to add the products or services you’re quoting. Include a description of these items together with their product number, quantities, the price per unit, and total price per item.
Another way of presenting your quote is by dividing the products or services according to different stages of the project. You may also consider separating the material and labor costs. Choose a template specific to your own industry so you can organize your breakdown of costs better.
Keep notes on everything that isn’t included in your project. For instance, a contractor may charge for the labor needed to install bedroom cabinets but won’t include picking up the cabinets and delivering them to the client’s home. Get the total for all of the costs to get your subtotal. If applicable, add the taxes to get the grand total.
- Add the terms and conditions
It is in this part of the quotation where you will account for any potential variations in your project. For instance, you may have a project timeline based on having ideal weather conditions.
Changes in weather can have an effect on your timeline. You will also include here how you want your clients to make payments and when. Include such details in this section.
- Include any other relevant notes
Finally, add a section that contains any details you might want to include like details about the timeline or your project’s expected date of completion. You can also create a summary of your project’s scope. Lastly, it’s always a good practice to thank the client for giving you the opportunity to give a quote. You can even express your willingness to work with them.