Do I Need to Give Customers a Written Quote?

Quoting customers in writing isn’t (always) a requirement, but it can be a very useful way to confirm what’s included and start any negotiations. Getting customers on board, or working with existing ones on new projects, is incredibly exciting (and often a massive relief). After all, more business usually helps you grow, build up your reputation, and it keeps the lights on. In this article we explain the best techniques for quoting a client and agreeing a price.

What is a written quote?

A written quote is a document issued from your business to a client outlining the goods or services you’ll provide, and at what price. This allows the client to then either accept or decline the offer, or to negotiate further.

Is it a legal requirement?

While a written quote isn’t a legal requirement, it’s in your business’s best interests to take every step possible to make sure you get paid.

Having proof that all parties agreed to the original price, along with a description of the exact services or products covered, can be a big help. Not to mention it’s useful for your bookkeeping records. We like those!

What do I include in a written quote?

If you’ve sent invoices to clients before then written quotes are pretty similar! They follow the same structure and should include:

Why is a written quote useful for my business?

There are many reasons why written quotes are useful for your business, and we’ve listed the major ones below.

It gives your customers peace of mind

Having everything in writing can put your customers’ mind at ease. They’ll know exactly what they’re getting in terms of your services, without worrying about hidden fees further down the line.

Ensures any deals or discounts promised to customers are fulfilled

It’s good to keep a record of any deals you’ve made with customers. For example, if you offer 20% off for returning customers then including this on the quote is further peace of mind for them, and ensures you don’t charge them the full amount when it’s time for them to pay.

It’s easy for things to get confused without having this in place. Imagine if you’re unavailable the day they try to pay, and your employee charges them full price! There’ll be some awkward emails waiting when you return.

Making the process less confusing means they get a better experience so you’re less likely to receive a negative review, and more likely to have happy returning customers.

Helps protect you from any disputes

A written quote can also protect your business against any potential disputes.

Most customers are genuine, but for the security of your business (and for your own bookkeeping records and sanity), written quotes can save you a heap of hassle overall.

You can use it to follow up with potential clients

Recording the quotes you provide means you’ll be able to set reminders to chase up each potential customer – without having to remember what they asked for and how much you quoted them. Lots of people are busy and may have forgotten they even received a quote from you, so a quick check-in could land you a few more clients.

Can I convert a customer quote into an invoice?

Most good bookkeeping software will include a quotes tool as well as features to make invoicing clients much easier. If you use Pandle for example (yes hello), you can just click ‘Convert to Invoice’ once you’ve changed the status of a quote to ‘accepted’, so you won’t have to spend time making separate documents.

Learn more about using Pandle to make business accounting easier. Create an account today and decide what to do with all the extra time you get back.